Commodities
Oil slips about 1% as futures reopen after weekend Houthi claims, with the Fed and 179 S&P 500 reports ahead
Brent gave back part of Friday's surge in the first minutes of Sunday trading as markets waited for proof of damage to Saudi oil sites before a week packed with US central bank, growth and earnings news.
HedgeWeekly News Desk ·
Brent crude futures traded at $115.27 a barrel about 20 minutes after trading resumed at 22:00 UTC on Sunday, Swedish news agency TT reported, down roughly 1.2% from Friday's settlement of $116.72. US benchmark West Texas Intermediate stood at $101.71, against a Friday settlement of $103.27.
The early dip followed a weekend in which the Houthis said they had hit Aramco facilities at Yanbu, the Rabigh refinery, pumping stations and the East-West Pipeline. Saudi Arabia had not confirmed any damage, according to FinanceFeeds, while the Saudi-led coalition reported intercepting ballistic missiles aimed at Yanbu, Taif and Riyadh. TT said Saudi Arabia answered with air strikes on targets in Yemen.
Friday's session had left Brent up $3.55, or 3.14%, at its highest settlement since April 29 and about 6% higher on the week. TT noted that crude was trading near $70 before the US and Israel went to war with Iran on February 28, so even after Sunday's slip prices remain well above pre-war levels.
Why it matters: the oil tape now runs straight into the busiest week of the third-quarter earnings season. The Fed announces its decision at 2 p.m. EDT on Wednesday and is widely expected to hold, Forbes reported, with September PCE inflation and a first look at third-quarter GDP, forecast at 3.2% growth, due Thursday. Some 179 S&P 500 companies report this week, including Alphabet and Microsoft on Wednesday, Amazon on Thursday and Exxon Mobil on Friday. With 83% of reporting companies beating estimates so far and blended third-quarter growth at 29.5%, the open question for investors is whether earnings can absorb crude above $100, and whether satellite images or Aramco loading notices on Monday confirm or dispel the weekend damage claims.