Oil hits five-month high near US$115 as markets weigh AI spending, earnings

Oil prices traded at five-month highs today, with benchmark crude contract Brent North Sea near US$115 (RM459) a barrel, as the Middle East conflict raged on. — Picture by Sayuti Zainudin

First Published: Friday, 23 Oct 2026 7:44 PM MYT

LONDON, Oct 23 — Oil prices traded at five-month highs today, with benchmark crude contract Brent North Sea near US$115 (RM459) a barrel, as the Middle East conflict raged on.

Stock markets mostly dropped in Europe following some poorly-received earnings from Gucci parent Kering and Swedish group Volvo Cars.

Asian equity indices closed out the week mixed as technology firms managed to claw back some of the week’s hefty losses.

Global markets were contending “with concerns around surging oil prices and the sustainability of AI spending”, noted AJ Bell head of financial analysis Danni Hewson.

“Oil is at five-month highs amid speculation there may be renewed US-Israeli strikes after next month’s US midterm elections.

“Escalating tensions in Ukraine and the prospect of increased energy demand as the northern hemisphere heads into the winter months are only adding to the upwards pressure on oil and gas prices,” Hewson added.

Rising energy prices have influenced movements across stock markets in recent days along with developments in the AI sector.

Facebook-parent Meta and chip equipment maker Lam Research saw their share prices dive this week despite above-forecast earnings for the pair.

“Strong results are no longer enough if the outlook fails to match an already demanding valuation,” noted Fawad Razaqzada, a markets analyst at traders FOREX.com.

“Investors are becoming much less forgiving.”

Non-AI companies have also seen their share prices slump this week.

Kering shed 13 per cent in Paris midday deals on Friday after the French luxury group published results that failed to reassure investors about a turnaround at its key Gucci brand.

Volvo Cars meanwhile plunged more than 25 per cent after it said US tariffs and strong competition from local brands in China pushed it into a third-quarter loss.

In response, the company announced a new five-billion-kronor savings plan it said would lead to about 2,000 job cuts in Sweden and 500 more globally.

Aside from energy markets, AI and earnings next week, focus will fall firmly on interest-rate meetings for the US Federal Reserve and European Central Bank, as well as an update on US economic growth data.

Key figures at around 1045 GMT 

Brent North Sea crude: UP 1.3 per cent at US$114.65 per barrel

West Texas Intermediate: UP 1.5 per cent at US$100.98 per barrel

London — FTSE 100: DOWN 0.6 per cent at 10,666.25 points

Paris — CAC 40: DOWN 0.7 per cent at 7,754.48

Frankfurt — DAX: DOWN 0.9 per cent at 25,141.34

Tokyo — Nikkei 225: DOWN 0.3 per cent at 62,693.16 (close)

Hong Kong — Hang Seng Index: UP 0.7 per cent at 23,093.37 (close)