Global oil prices fell during Asian trading on Monday, October 19, after crude benchmarks recorded strong gains the previous week. West Texas Intermediate (WTI) crude dropped below $99 a barrel earlier in the session, while Brent futures slipped below $109.
The decline followed signs that oil supplies continued leaving the Middle East despite tensions surrounding the Strait of Hormuz and attacks by Yemen’s Houthis on key Saudi Arabian crude sites. Meanwhile, investors faced fresh uncertainty as Asian stock markets weakened amid concerns about artificial intelligence investments, inflation and interest rates.
Oil Prices Retreat After Last Week’s Rally
WTI crude fell more than 0.8% during early Asian trading, while Brent futures declined nearly 1%. However, both major benchmarks remained above $100 a barrel in the latest market figures.
On Friday, November crude futures on the New York Mercantile Exchange (NYMEX) gained $3.44, or 3.5%, to settle at $101.41 a barrel. Meanwhile, front-month Brent crude on the European ICE Futures Exchange rose $3.94, or 3.7%, to close at $109.86.
For the full week, NYMEX crude advanced 10.4%, while Brent gained 4.9%. Monday’s retreat therefore followed a strong upward run rather than a sustained decline.
At around 0230 GMT, WTI traded down 0.8% at $100.62 a barrel. Brent fell 1.8% to $107.89.
Middle East Tensions Keep Oil Supply in Focus
Despite ongoing regional tensions, signs that crude supplies continued leaving the Middle East helped ease prices. Iran’s restrictions around the Strait of Hormuz have raised concerns about a potential disruption to a critical global energy route.
At the same time, attacks by Yemen’s Houthis on major Saudi Arabian crude sites added to uncertainty over regional supply security. Nevertheless, continued oil movements offered some reassurance to markets concerned about possible shortages.
Asian Stock Markets Decline Amid AI Investment Concerns
Asian shares mostly fell on Monday as investors reacted to a technology-led sell-off on Wall Street. Growing doubts about the returns from artificial intelligence investments weighed on chipmakers and other technology companies.
Investors increasingly questioned whether future revenues would justify the huge spending on data centres, semiconductors and power infrastructure. Rising costs and inflation concerns also pressured companies that depend on borrowing to finance expansion.
National Australia Bank strategist Rodrigo Catril said, “The US equity sell-off reflected a reassessment of the economics underpinning the AI investment boom rather than a simple downgrade to end-demand,”
He added, “Investors are increasingly questioning whether future revenue can justify the capital and financing required for data centers, chips and power infrastructure.”
The Nasdaq fell more than 2% on Friday, while Microsoft, Nvidia, AMD and Amazon contributed to the technology-led losses.
CoreWeave Debt and Federal Reserve Decision Add Pressure
Concerns about the financial position of AI infrastructure company CoreWeave also unsettled investors. Its shares fell around 30% during October, while yields on some bonds climbed amid growing concerns about its financial outlook.
Comments from Nvidia chief Jensen Huang had supported Asian markets on Friday. However, that optimism faded as trading resumed on Monday.
Investors are also preparing for the Federal Reserve’s interest rate decision next week. Expectations of another rate increase strengthened after US inflation data exceeded forecasts. Higher borrowing costs can weigh on technology companies because many rely on financing to support major investments.
Key Asian Market and Currency Figures
At around 0230 GMT, Tokyo’s Nikkei 225 fell 1.2% to 64,534.03, while Seoul’s Kospi declined 0.2% to 5,656.47. Shanghai’s Composite Index lost 0.4% to 3,702.32, and Hong Kong’s Hang Seng Index remained closed for a holiday.
Tokyo technology stocks, including SoftBank, Advantest and Tokyo Electron, faced pressure. Meanwhile, losses among chipmakers SK hynix and Samsung weighed on Seoul’s market. Taipei, Shanghai, Sydney, Singapore and Wellington also recorded declines.
China’s economy grew 4.5% in the third quarter, slightly above expectations in an AFP survey. However, the data triggered little immediate market reaction.
In currency trading, the euro fell to $1.1227 from $1.1236 on Friday, while the pound edged up to $1.3330 from $1.3329. The dollar rose to 158.03 yen from 157.99 yen, while the euro slipped to 84.23 pence from 84.31 pence.
On Friday, the Dow Jones Industrial Average closed down 0.3% at 52,002.41. In contrast, London’s FTSE 100 gained 0.4% to finish at 10,881.90.
With oil prices retreating and technology shares under pressure, investors are watching regional supply risks, inflation data and upcoming central bank decisions for the next direction of global markets.
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