Oil rises on supply concerns as Lockheed Martin quarterly sales grow 11%
Key Facts
Oil prices rose on renewed concerns over disruptions to energy supplies, while Lockheed Martin reported an 11% year-on-year increase in sales to $20.7 billion in the third quarter of 2026. Reuters linked crude's rise to Houthi attacks in Saudi Arabia and the concerns they raised over supplies from the energy-exporting region. The agency said the attacks "stoked fears of further disruption to energy supplies from the key exporting region." In forecasts published in its October report, the U.S. Energy Information Administration projected Brent spot prices would average $105 a barrel in the fourth quarter of 2026. That estimate is $14 a barrel higher than the agency's forecast in the previous month's report.
Lockheed Martin's results showed third-quarter net income rose to $1.8 billion, according to the company's statement on the period. Earnings grew 14% from the corresponding quarter a year earlier. Earnings per share were $7.97, exceeding analysts' estimates of $7.43, according to Reuters. On cash generated by the business, the company reported operating cash flow of $3.4 billion during the same quarter. Free cash flow also totaled $3.0 billion, according to the statement, alongside the earnings and sales growth reported for the period.
The company raised its annual sales and earnings forecasts, according to Reuters, setting a higher range for 2026 revenue in its October update. It now expects full-year sales of between $80 billion and $82 billion. That compares with the range announced in July, when it expected sales of between $79.75 billion and $81.75 billion. Lockheed Martin also set its updated diluted earnings per share forecast at about $30.35–$30.75 for the same year. Its previous estimates, issued in July, pointed to diluted earnings of about $29.95–$30.65 per share, before it raised both ends of the range in the latest update.
Against the backdrop of the company's results and annual forecasts, Lockheed Martin's order backlog stood at $292.0 billion at the end of the third quarter of 2026, a level the company described as a record. The backlog included $52.5 billion tied to a multiyear contract to produce upgraded Patriot interceptor missiles. The company and the U.S. Department of Defense announced another framework agreement in October covering the production and support of U.S. F-35 fighter jets. The framework covers 850 fighters over 10 years, according to Lockheed Martin's announcement of the agreement. Finalizing the fighter contract's terms, pricing and schedules remains contingent on multiyear contracting authority and associated funding appropriations in the coming months.
In the United States, the Energy Information Administration's weekly report showed commercial crude oil inventories fell by 3.1 million barrels. The decline covered the week ended October 16, 2026, according to the agency. Commercial crude inventories stood at 412.5 million barrels after the drawdown. That total covers commercial inventories excluding oil held in the U.S. Strategic Petroleum Reserve. Distillate inventories, meanwhile, rose by 1.7 million barrels during the same week, alongside the decline in commercial crude stocks.
On U.S. monetary policy, the current federal funds target range stands at 3.75% to 4%, according to the Federal Reserve's decision issued on September 16, 2026. That range followed a quarter-percentage-point rate increase at the September meeting. The Energy Information Administration's regular schedule calls for the weekly oil inventory report to be released on Wednesday. The agency has set 10:30 a.m. Eastern time as the report's usual publication time. The next Federal Open Market Committee meeting takes place on October 27 and 28, 2026, and includes a press conference, according to the Federal Reserve's calendar.