U.S. crude oil futures fell about 2% early Monday, October 26, retreating from last week’s rally even as attacks on Saudi Arabia kept energy supply disruptions in focus. West Texas Intermediate (WTI) crude futures were down $2.14, or 2.07%, at $101.13 per barrel as of 02:32 UTC (10:32 p.m. Eastern on October 25), according to Reuters. Brent crude futures fell $2.12, or 1.82%, to $114.60 per barrel at the same observation time.
The decline followed a sharp advance on Friday, when concerns about attacks on Saudi energy infrastructure helped lift both benchmarks. Brent gained approximately 6% over the previous week, while WTI rose 2.3%, according to Reuters.
Monday’s retreat illustrates how quickly the oil market can reprice supply risks. Both benchmarks remained above $100 per barrel at the reported observation, but the pullback did not establish that the underlying disruptions had ended.
Saudi supply risks remain in focus
The latest decline came after another weekend of reported attacks involving Saudi Arabia. Reuters reported that Houthi forces claimed strikes on an airport and oil facilities on Saturday, while Saudi Arabia reported intercepting additional missiles and drones on Sunday.
Saudi Arabia also partially restored operations at its main airport following earlier damage. The developments followed a period of heightened Saudi supply disruptions and concerns about oil shipments through the Strait of Hormuz.
For the market, the distinction between damage, temporary interruption and sustained production or export losses is important. An attack can increase the risk premium embedded in futures prices without establishing how many barrels will ultimately be unavailable.
The wider question is whether physical oil supplies can continue reaching refiners and international buyers despite infrastructure and transportation risks.
US emergency oil exchange
The U.S. Department of Energy announced on October 23 that it had authorized an emergency exchange of up to 400,000 barrels of crude oil from the Strategic Petroleum Reserve.
According to the department’s official announcement, the crude would be supplied from the West Hackberry reserve site to address disruptions affecting the Phillips 66 Lake Charles refinery in Louisiana.
The arrangement requires borrowed crude to be returned with additional barrels. It is a targeted refinery-support measure, not evidence that the government has permanently sold those barrels or resolved broader global supply problems. The announcement adds context to earlier strategic reserve coverage and the wider relationship between supply availability and U.S. inflation pressures.
What the WTI-Brent divergence tells investors
At the reported observation, Brent traded approximately $13.47 per barrel above WTI, calculated by subtracting $101.13 from $114.60. Brent fell by a smaller percentage than WTI, even though its dollar decline was almost identical. The comparison shows that the two benchmarks experienced different proportional moves during the same reporting window.
However, one intraday price comparison cannot establish why the spread changed or prove that a particular trade caused the divergence. The distinction matters because sustained energy inflation pressures can influence broader market expectations, including the Federal Reserve outlook.
What oil traders will watch next
The immediate focus remains on verified developments affecting Saudi infrastructure, crude exports, tanker movements and refinery operations. In the United States, the Energy Information Administration’s weekly petroleum report is the next important scheduled source for crude inventories, refinery activity and petroleum-product stocks, with an October 28 update listed by the agency.
The EIA’s daily price data can also provide a subsequent comparable market snapshot, although spot quotations and futures settlements must be distinguished from Monday’s intraday prices.
Oil’s next move will depend on developments that are not yet settled: whether attacks continue, whether supply routes remain operational and whether new evidence shows lasting losses of crude availability.
Market-data note: Prices in this report are Reuters-reported intraday futures observations from 02:32 UTC on October 26, 2026, not live quotations or official closing settlements. The reported contract months were not independently established.
