CommoditiesMedium•6 October 2026•
1 min read
Brent Crude Drops Below $98 Easing Inflation Risks and Boosting Euro
Key Facts
1Brent crude prices fell below $98 per barrel due to improved Middle East supply and Saudi Arabia's aggressive price cuts for Asian buyers.
2Lower oil prices led to a decline in sovereign yields and narrowed the French-German 10-year spread toward 130bp.
Brent crude prices fell below the $98 per barrel threshold due to improved Middle East supply availability and Saudi Arabia's aggressive price cuts for Asian buyers. Reuters reported that the decline led to a narrowing of the French-German 10-year sovereign yield spread toward 130 basis points as sovereign yields eased.
The drop in energy prices helped mitigate inflation risks, supporting a rebound in the EUR/USD exchange rate. According to ActionForex, the downward pressure on crude was further intensified by a planned G7 emergency stock release and Saudi Aramco's decision to cut its November official selling price for Arab Light crude to Asia to a $5 discount against the Oman/Dubai average.