Oil edges higher as investors weigh renewed Houthi attacks on Saudi infrastructure
USO•Brent rose 0.15% to $110.03 a barrel and U.S. West Texas Intermediate gained 1.66% to $103.09 as investors weighed renewed Houthi attacks on Saudi targets and concerns over Gulf supply disruptions.
1. Oil prices rise
Brent crude futures rose 17 cents to $110.03 a barrel at 1:08 p.m. ET, after falling more than $3 earlier in the session. U.S. West Texas Intermediate gained $1.68 to $103.09, putting it on track for its highest settlement since September 15.
2. Attacks raise supply concerns
Yemen’s Houthis said they attacked Saudi energy, airport and military targets, including an Aramco facility in Yanbu and the Shaybah oilfield. Saudi authorities did not immediately confirm the claims, which could not be independently verified. Iran’s Revolutionary Guards said an oil tanker caught fire and exploded after striking a naval mine in the southern Strait of Hormuz. Kpler said crude flows through the region averaged about 8.5 million barrels per day last week, down from more than 20 million bpd the week before.
3. Analysts assess risks
UBS analyst Giovanni Staunovo said ongoing vessel strikes and flows below pre-conflict levels continued to support prices. SEB analyst Bjarne Schieldrop predicted that increases in exports through Hormuz may prove short-lived as Iran could escalate attacks ahead of the November 3 U.S. midterm elections. A U.S. waiver of some sanctions and tariffs related to Russian energy exports raised the prospect of additional fuel exports, but analysts cited uncertainty over its implementation and duration.
