Oil prices settle up about 3% as Houthi attack on Saudi Arabia lifts supply fears
USO•Oil prices rose about 3% on Thursday, with Brent settling at $106.60 a barrel and U.S. WTI at $94.61, after a Houthi missile attack on Saudi Arabia revived supply concerns. Prices retreated from session highs after reports of U.S.-Iran discussions on reopening the Strait of Hormuz.
1. Crude settles higher
Brent futures rose $3.52, or 3.4%, to settle at $106.60 a barrel, its highest close since September 15. West Texas Intermediate gained $2.45, or 2.7%, to settle at $94.61, snapping a six-session slide during which it had lost about 13%; both contracts were up about 5% at their session highs.
2. Attack and supply concerns
Saudi Arabia said it intercepted six Houthi ballistic missiles targeting Taif and the Yanbu area. The country is increasing crude pumping volumes through its East-West Pipeline to Yanbu, though crude tanker loadings there have yet to resume.
3. Hormuz talks weigh
U.S. and Iranian negotiators are exploring a phased path that would involve Iran reopening the Strait of Hormuz and Washington lifting its economic blockade, sources close to the talks said. The reports contributed to prices coming off their highs.
