Oil Slips on Reports of Higher Gulf Supply as AI Demand Lifts Chip Stocks

Brent crude fell 2.1% as reports surfaced that more oil was leaving the Middle East than previously thought, even with the Gulf conflict still active, according to Channel News Asia.

Saudi Arabia was aiming to quickly restart some flows through its main east-to-west pipeline after damage from attacks the previous week, Channel News Asia reported, adding that details were lacking.

The softer crude price coincided with a rally in technology equities. In Asia, Nikkei futures rose 0.5% while the cash market was shut, South Korea's tech-heavy index gained 1.5%, the MSCI Asia-Pacific index excluding Japan added 0.8%, and Chinese blue chips rose 0.6%, per Channel News Asia. Channel News Asia attributed the regional gains to AI-driven data demand supporting chipmakers.

Global stocks extended the move, with fresh evidence of AI demand lifting tech shares while oil retreated on the same Gulf supply reports, according to the London Stock Exchange news service. The Nasdaq closed at a record high, lifted by Advanced Micro Devices and other AI names, with lower oil prices and long-dated Treasury yields also supporting risk sentiment, the outlet reported.

Intel and Arm Holdings each surged more than 12%, and the PHLX semiconductor index jumped 4.3%, according to reporting carried by the Bradenton Herald.