Europe opens its strategic oil stocks as a barrel of Brent stays stuck above 110 dollars

The oil price rose by about 15 percent in October, Trends reports, citing ABM. Investors are increasingly bracing for an escalation between the US and Iran after Tuesday's US midterm elections. On Friday a barrel of Brent traded at around 113 dollars and a barrel of WTI at around 104 dollars, writes Business AM, which notes it is the fourth monthly rise in a row. An attack on a tanker in the Strait of Hormuz and Houthi claims of attacks on Saudi facilities fuelled the unease. La Libre observes that the oil price appears to have settled between 110 and 120 dollars.

European Union member states plan to release 42.6 million barrels from their strategic stocks onto the market in the coming months, roughly half of it diesel, Business AM reports. Energy Commissioner Dan Jørgensen announced the move after talks with energy ministers in Luxembourg. It is part of a G7 agreement to release 100 million barrels of oil and diesel, overseen by the International Energy Agency. Jørgensen admitted that the effect on prices is uncertain: the European contribution covers only four days of normal consumption.

The commissioner expects petrol and diesel to stay expensive all winter as long as the conflict in the Middle East drags on. Temporary support for affected sectors and households is defensible, in his view, but the lasting solution lies in a faster shift to renewable energy. In France, TotalEnergies will cut the diesel price at around 700 filling stations to 2.15 euros per litre from Saturday, some 9 percent below the national average, Business AM reports. The French government itself plans to release 10 million barrels from its strategic diesel reserves.

Ole Hansen of Saxo Bank warns that the US elections and political developments in Israel could cause even bigger swings, according to Business AM. Even after the war ends, he expects a higher price floor of 70 to 90 dollars a barrel, because stocks will need to be rebuilt. Gold is feeling the effects too: the precious metal slipped below 4,000 dollars an ounce on the back of rising oil prices and inflation fears, Business AM reports.