Brent at $104.3 as U.S. energy stocks rise before the open
Key Facts
U.S. energy stocks rose in premarket trading on November 5 as oil prices climbed amid concerns related to Iran and the Strait of Hormuz. Brent crude futures gained 3% to $104.3 a barrel, while West Texas Intermediate rose 3.2% to $98.40, according to a report published by Investing.com that day. The rise in crude lifted energy shares before trading began, the report said. The moves came as concerns over energy supplies and shipping in the region were reflected in oil prices. The report attributed the rise in prices to fading hopes for an imminent de-escalation, as attacks on vessels in the Strait of Hormuz continued.
Gains among oil and gas producers outpaced those of the large integrated companies. Chevron and Exxon Mobil shares rose about 1% each in premarket trading, while APA, SM Energy, Devon Energy and Occidental Petroleum gained between 1.5% and 2.6%, according to Investing.com. This coincided with a 3% rise in Brent and a 3.2% increase in West Texas Intermediate, putting producers at the forefront of the sector moves cited in the report. The report attributed higher oil prices to President Donald Trump’s comments on Iran’s response to a U.S. peace proposal. Trump said the response was "unacceptable," the report said, in remarks made amid continued concerns about supply security. The report also linked market moves to the Strait of Hormuz remaining largely closed.
UBS oil analyst Giovanni Staunovo said prices were being supported by diminishing chances of near-term de-escalation. He was quoted as saying, "Oil prices are being supported by fading hopes for an imminent de-escalation." The assessment helps explain crude’s sensitivity to the course of tensions, while passage through the Strait of Hormuz remains central to shipping concerns. Reuters, citing data from the Washington Institute for Near East Policy, reported that 37 vessels were attacked during October. That was the highest monthly total since the war began, Reuters said. This background shows the scale of risks surrounding maritime traffic during the period covered by the report, alongside higher crude prices and energy stocks on November 5.
Against the backdrop of prices, the U.S. Energy Information Administration said the average spot price for Brent was $124 a barrel in October, up $10 from September and the highest average since July 2022. The agency attributed the increase to falling inventories, attacks on tankers and shipping restrictions. It also estimated that oil production outages in the Middle East averaged 2.5 million barrels a day during October, compared with a peak of 10.9 million barrels a day in May. The difference between the two levels points to outages declining from their peak, while oil flows are expected to remain somewhat constrained through the rest of 2026, according to the agency’s estimate. These figures place market moves in the context of supply disruptions recorded by the agency in previous months, alongside shipping-related risks.
Looking ahead, the Energy Information Administration expected Brent to remain near $100 a barrel during November and December 2026. It also projected that prices would decline gradually as depleted global inventories are rebuilt over the following year, averaging $77 a barrel in the fourth quarter of 2027. The agency tied its price outlook to the recovery in inventories, while noting that oil flows would remain somewhat constrained through the rest of 2026. These estimates follow an average spot Brent price of $124 a barrel in October, the highest level since July 2022, according to its data. Energy stocks rose in premarket trading on November 5 as crude climbed, amid the de-escalation and shipping concerns cited in the report.