Brent crude edges lower

Brent crude futures ended Monday at USD109.55 a barrel, a decline of 0.3 percent or 31 cents, after dipping by over USD3 at one stage during the day. Business Recorder reported that traders locked in gains after the prior week's run-up had lifted prices to a five-month peak. US West Texas Intermediate, by contrast, rose 2.2 percent to USD103.66, its highest settlement since September 15, although trade was thin before the front-month contract expired on October 20.

Yemen's Houthis said they had struck Saudi energy, airport and military targets, among them an Aramco facility in Yanbu and the Shaybah oilfield. Saudi authorities had not yet confirmed those claims, and Reuters was unable to verify them on its own. Separately, Iranian media quoted the Revolutionary Guards as saying an oil tanker had burst into flames after a naval mine struck it in the southern section of the Strait of Hormuz on Sunday.

Analytics firm Kpler put the seven-day average for regional crude movements at roughly 8.5 million barrels a day last week, compared with over 20 million bpd in the prior week. It attributed the drop to rising threats against commercial shipping and recorded 10 or more verified incidents affecting merchant ships during that week. In addition, US President Donald Trump signed an order on Friday waiving some sanctions and tariffs on Russian energy exports, a step criticised by both political opponents and allies.