Oil slips $2 a barrel but stays near six-month highs on Saudi attacks
USO•Oil fell about $2 a barrel on Monday as hopes for easing hostilities between the United States and Iran offset concern about continuing attacks on Saudi Arabia. Brent was down 1.7% at $114.70 and U.S. WTI was down 2.5% at $100.71.
1. Prices ease from highs
Brent crude futures fell $2.03, or 1.7%, to $114.70 a barrel, while U.S. West Texas Intermediate futures dropped $2.60, or 2.5%, to $100.71. Prices had risen more than $3 on Friday; Brent gained 6% for the week and WTI rose 2.3%.
2. Attacks and mediation
Qatari mediators traveled to Tehran on Sunday to try to de-escalate regional tensions, while Saudi Arabia, Turkey and Pakistan were set to hold talks with Iranian officials. The Houthis said they had struck pumping stations on Saudi Arabia’s East-West crude pipeline and Riyadh airport over the weekend, and Saudi Arabia said it intercepted more missiles and drones.
3. Supply disruptions continue
The conflict has disrupted commercial shipping through the Strait of Hormuz and Bab el-Mandeb Strait. Saudi Aramco plans to start storing crude in Singapore in the second half of 2027, while the head of the International Energy Agency said he did not expect energy markets in 2027 to return to pre-war levels.
