Stronger dollar and demand risks drive global crude prices to new lows

Oil prices dropped approximately 2 percent at the close of trading on Saturday, 26 September, as market participants weighed global economic signals against persistent supply constraints. The decline occurred despite ongoing volatility in energy markets and geopolitical concerns that have historically supported higher pricing tiers. Brent and WTI see sharp declines Brent crude futures, the international benchmark, fell by $2.28, or 2.1 percent, to settle at $104.32 per barrel. Simultaneously, US West Texas Intermediate (WTI) crude futures decreased by $2.20, or 2.3 percent, ending the session at $92.41 per barrel. The downward movement marks a shift in momentum following a period of relative price stability in the third quarter. The price correction follows a Friday settlement in New York where traders appeared to prioritize demand-side risks over immediate supply shortages. Market data indicates that the 2 percent slide was driven by specific hedging activities and a strengthening dollar, which typically makes oil more expensive for holders of other currencies, thereby dampening global demand. Impact on energy markets For UAE readers and regional energy producers, the settlement at $104.32 maintains Brent well above the fiscal break-even points for most Gulf economies, even with the intraday loss. However, the volatility affects logistics costs and fuel pricing structures across the Middle East, where energy exports remain the primary driver of GDP growth. Industry…