Oil prices held largely steady on Friday, October 2, 2026, as traders weighed renewed tensions between the United States and Iran against signs that crude oil supplies from the Middle East were beginning to recover.
Brent crude dipped 3 cents, or 0.03 per cent, to $102.28 a barrel by 0350 GMT, after trading slightly higher earlier in the session. The benchmark was heading for a weekly decline of about 2 per cent, despite rising more than $4 on Thursday.
US West Texas Intermediate (WTI) crude also eased, falling 19 cents, or 0.2 per cent, to $92.68 a barrel. WTI was on track for a weekly gain of about 0.3 per cent.
The mixed signals have left investors cautious, with improving Saudi export volumes providing some relief while renewed US military activity in the Middle East raises concerns about possible supply disruptions.
“The market is taking stock of a distinctly mixed set of signals this week,” KCM Trade chief analyst Tim Waterer said, adding that traders were “simply taking a breather” after Thursday’s sharp price moves.
Waterer said the improving Saudi export picture was being offset by reports of another US aircraft carrier heading towards the Gulf and China’s decision to curb refined product exports.
Oil prices settled higher in the previous session after Reuters reported that Chinese refiners had suspended oil product exports for October as Beijing sought to preserve domestic stocks.
Meanwhile, the Wall Street Journal reported that the United States was sending a third aircraft carrier and up to 10,000 additional troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.
Market participants remain focused on the availability and movement of Middle Eastern crude and refined products to global markets.
“The more immediate concern is the availability and movement of Middle Eastern crude and refined products to the rest of the world,” Priyanka Sachdeva, head of market insights at Phillip Nova, said.
Sachdeva said the $100-a-barrel level had become an important psychological and market-positioning threshold as traders increasingly priced in the possibility that global oil supply chains could remain vulnerable for longer.
Investors are now closely watching US-Iran tensions, Middle East supplies, Saudi exports and China’s refining activity for further signals on the direction of oil prices.