What happened
Brent crude prices declined sharply to $97.36 per barrel from above $103, while West Texas Intermediate fell to $89.57 per barrel. Reports from JP Morgan, Goldman Sachs, and Kpler indicated that Persian Gulf oil exports returned close to pre-war levels. Goldman Sachs noted Saudi Arabian exports doubled in September, exceeding their 2025 average rate.
Why it matters here
High oil prices directly contribute to Australian transport and energy inflation, complicating the Reserve Bank's interest rate policy. Lower crude prices reduce cost pressures across supply chains and ease consumer fuel expenses, though persistent maritime shipping risks keep energy markets sensitive to sudden supply shocks.
What to watch
Watch weekly global export volume reports and tanker transit data through the Strait of Hormuz for supply updates.
Source
au.investing.com