Oil prices climbed above $103 a barrel on Monday after Yemen’s Iran-backed Houthis said they had launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and the Khurais area, raising fresh concerns about disruptions to crude production.
Brent crude futures rose 81 cents, or 0.79 per cent, to $103.06 a barrel, while US West Texas Intermediate gained 46 cents, or 0.50 per cent, to $91.57.
The reported attacks came as tensions around Saudi Arabia’s energy infrastructure intensified. The Houthis said the strikes were carried out in response to Saudi-led air and missile strikes on Yemen. Saudi authorities had not immediately confirmed the reported attacks.
The development adds another layer of risk to an already unsettled oil market. Crude prices have remained above $100 as attacks on commercial vessels and disruption around major Middle Eastern shipping routes continue to threaten energy supplies.
However, the immediate price gains were later reversed as rising Middle Eastern crude exports and plans by G7 countries to release emergency oil stocks eased some concerns about supply shortages.
Saudi Arabia is one of the world’s largest oil exporters, making any sustained damage to its production or export infrastructure potentially significant for global energy markets.
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