📈 Global Oil Supply Shock: Brent Crosses $100

Global oil prices surged on supply disruption risks, directly threatening net oil importers like Sri Lanka through higher energy & transport costs and import bill pressure. • Price Movements • Brent Crude: US$ 101.51/bbl (up 0.92% / +$0.93) • US WTI Crude: US$ 90.25/bbl (up 0.92% / +$0.82) • Key Supply Drivers • US Gulf Storm: Approaching hurricane threatens 15% of US crude and 5% of natural gas output, impacting ~50% of national refining capacity (18.2mn bpd). • Middle East Conflict: Houthi attacks on Saudi Arabia's Jazan and Najran airports escalate supply risks despite regional shipments reaching 12mn bpd of crude. • US Inventory: US crude stocks dropped by 2.09mn barrels (week ended Oct 2). • Impact on Sri Lanka's Economy • Higher crude import costs threaten trade balance stability and forex reserves. • Potential pass-through risks to domestic fuel pricing affect logistics & freight and core manufacturing sectors like apparel & textiles.