Brent Falls to $98.5 as Mideast Crude Exports Top Prewar Levels
Brent, which opened Sunday night at $102-103, slipped below $100 this morning. Premarket, the contract trades near $98.50, down 1.6%. WTI is off 2% at about $87.50.
The driver is supply data. Middle East crude exports topped prewar levels on four days in the last week of September. The G7's 100-million-barrel stock release is also weighing on prices.
The Houthis still claim strikes on Saudi airports and refineries; Riyadh has not confirmed them. The market did not price the claim.
It priced the shipping numbers.
Lower oil gave bonds some room. The 10-year yield topped 5.3% on Monday, its highest since 2002.
This morning it is down 3-4 basis points, at 5.27-5.28%. The 30-year yield eased from 5.70% to 5.63%.
Rate expectations did not move. Futures price a 78% chance the Fed holds in October; a December hike is largely priced in.
The second story is AI's power demand. Google signed a 3,590-megawatt deal with Constellation Energy. Of that, 890 MW comes from nuclear uprates under a 20-year contract; 2,700 MW comes from the existing fleet.
Constellation will invest more than $4.3B, with the first added power due in 2028. The stock is up 8-9% premarket. It had been down 27% this year.
