Global oil prices surged to nearly a six-month high following continuous Houthi attacks in Saudi Arabia and growing concerns over disrupted fuel supplies in the Middle East. On Friday, both crude benchmarks jumped by more than $3 per barrel. Brent crude rose by $3.55 (3.14%) to reach $116.72 per barrel—its highest level since April 29. Meanwhile, US West Texas Intermediate (WTI) crude climbed by $3.80 (3.8%) to stand at $103.27 per barrel. On a weekly basis, Brent recorded a 6% increase, while WTI rose by 2.3%.
Adam Turnquist, Chief Cross-Asset Strategist at US wealth management firm LPL Financial, stated that supply disruption fears are the primary driver behind the price hike. Market anxiety intensified after Iran-backed Houthi rebels launched consecutive attacks on Saudi locations, particularly targeting energy infrastructure. Notably, on Thursday, Saudi state oil company Aramco ordered the evacuation of its headquarters in Dhahran, near Bahrain on the Gulf coast, amid escalating conflict with the Houthi movement.
Meanwhile, an oil spill was detected from a tanker off the coast of Umm Al Quwain in the United Arab Emirates, though the UAE Ministry of Climate Change and Environment stated that the cause and the tanker remain unidentified. Shipping sources reported that on October 9, a supertanker named "Gem No. 2" was struck by an unknown projectile 13 nautical miles west of Al Jazirah village along the UAE coast. Andrew Lipow, President of Lipow Oil Associates, warned that increased tanker attacks over the past week have heightened market concerns.
To combat supply constraints, the US Department of Energy approved the release of up to 400,000 barrels of crude from the Strategic Petroleum Reserve (SPR) following supply disruptions at a Phillips 66 refinery in Lake Charles, Louisiana, leaving US strategic oil reserves at their lowest level since 1982. Additionally, Germany's national oil reserve agency, EBV, issued tenders to sell diesel, heating oil, and crude from strategic stocks following a G7 agreement under US pressure. Meanwhile, production dropped at Libya's Hamada and Tahara oilfields due to a closed pipeline valve, and the first shipment of diesel from Russia was dispatched to the US following an export agreement between Moscow and Washington. Finally, US oil and gas rig counts remained unchanged for the second consecutive week at 603 rigs, according to Baker Hughes.
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Reported by International Desk • Edited by the Daily Best News desk. Send corrections to [email protected].
