Crude Oil Prices Rise as Houthi Attacks Raise Global Supply Concerns

SINGAPORE: Global crude oil prices climbed during early trading on Friday as escalating attacks by Yemen’s Houthi group on Saudi Arabia heightened concerns about potential disruptions to international energy supplies.

Brent crude futures increased by 86 cents, or 0.75%, to reach $115.74 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures gained 72 cents, or 0.71%, to trade at $102.72 per barrel as of 0122 GMT on October 30.

Both international benchmarks were heading towards their fourth consecutive monthly increase, reflecting growing uncertainty surrounding energy supplies and security conditions across the Middle East.

Brent crude was on track to record an increase of nearly 14% during October, while WTI was expected to gain approximately 15%. The US benchmark was also heading towards its first monthly close above $100 per barrel since April.

The latest price increases followed renewed attacks claimed by Yemen’s Iran-aligned Houthi group against several Saudi energy facilities. The locations reportedly included the Ras Tanura refinery, Rabigh refinery and an oil production facility operated by Saudi Aramco in Abqaiq.

The developments have intensified concerns about the security of critical energy infrastructure in Saudi Arabia, one of the world’s major oil-producing countries.

Market uncertainty has also been fuelled by continuing tensions surrounding the Strait of Hormuz, a strategically important shipping route through which substantial volumes of global oil supplies are transported.

Persistent security threats and uncertainty over diplomatic progress have increased concerns about further escalation in the region, keeping pressure on international crude prices.

The oil market is also monitoring developments involving regional shipping routes, energy infrastructure and diplomatic efforts to reduce tensions.

Continued instability could increase volatility in international energy markets and create additional uncertainty for oil-importing countries.

With Brent and WTI maintaining elevated price levels, global markets remain sensitive to developments affecting Middle Eastern oil production and transportation.

The direction of crude oil prices in the coming weeks will largely depend on regional security conditions, the stability of energy supplies and progress towards diplomatic efforts.