Oil Prices Swing Lower After Early Rise on Houthi Attacks on Riyadh
SINGAPORE — WEB DESK: Global oil prices initially rose on Monday after Yemen’s Iran-aligned Houthis launched missile and drone attacks targeting Saudi Arabia, including Riyadh, renewing concerns that escalating Middle East hostilities could disrupt crude supplies. Prices subsequently reversed those gains as investors focused on diplomatic prospects and recovering Saudi exports.
Early in Asian trading, Brent crude rose 81 cents, or 0.78%, to $104.68 a barrel, while US West Texas Intermediate (WTI) gained 76 cents, or 0.76%, to $101.06 a barrel, according to the Reuters figures carried in the original Express Urdu report.
The initial increase followed Houthi missile and drone attacks on Saudi Arabia. The Houthis claimed strikes on targets in Riyadh as well as an Aramco facility in Yanbu. Saudi authorities reported intercepting a missile targeting Riyadh and thwarting additional attacks.
However, the market changed direction as Monday’s trading progressed. By 0213 GMT, Brent had dropped $2.16, or about 2.1%, to $101.71 a barrel, while WTI was down $2.15, or roughly 2.1%, at $98.15. Both benchmarks touched their lowest levels since September 10.
The reversal reflected growing market attention to potential diplomatic activity surrounding the Iran conflict during the United Nations General Assembly, alongside signs that Saudi Arabia has managed to restore some crude exports despite continuing attacks.
Saudi crude exports have recovered to more than 4 million barrels per day in September, after falling to about 2.4 million bpd in August, according to Reuters. The kingdom has increasingly relied on alternative arrangements and available Gulf routes to maintain shipments amid disruptions to energy infrastructure.
Shipping conditions nevertheless remain highly abnormal. Reuters reported that only around 12 commodity vessels crossed the Strait of Hormuz over the weekend, compared with 35 during the previous weekend. Before the conflict began, approximately 125 large vessels typically crossed the strategic waterway each day.
The situation illustrates the volatility facing global energy markets: fresh attacks on Saudi Arabia can quickly increase the geopolitical risk premium, while signs of restored supply or diplomatic progress can push crude prices back down.
For publication timing, it is important to note that the supplied Express Urdu article captures the initial rise in oil prices. Later Reuters market data on September 21 showed that those gains had reversed, making the subsequent decline the more current market position.
