Crude oil recovered from earlier losses to trade around $89.5 a barrel on Tuesday, after briefly dipping below $87 as supply concerns re-emerged. A Saudi-led coalition reported intercepting and destroying a ballistic missile launched by Houthi forces toward Khamis Mushait in Saudi Arabia, while separate reports indicated that Iran had intensified attacks on tankers passing through the Strait of Hormuz in recent days.
Still, evidence of improving supply flows continued to cap price gains. Saudi Arabia’s Minister of Energy, Industry and Mineral Resources said the East–West oil pipeline had restored its crude transport capacity to 5.8 million barrels per day. At the same time, G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves and committed to avoiding energy export restrictions.
Nonetheless, the US Energy Information Administration (EIA) raised its outlook for oil prices, projecting Brent crude at $105 a barrel in the fourth quarter of 2026, $14 higher than its previous forecast.
