Brent crude futures reached $100.54 a barrel on October 6, while US West Texas Intermediate rose to $89.50. Prices stayed steady as G7 nations released emergency oil reserves to ease supply fears. However, Houthi attacks on Saudi targets kept traders on edge, as the conflict continues to threaten global flows.
Brent crude futures gained 20 cents to $100.54 a barrel, while US West Texas Intermediate crude futures rose 12 cents, or 0.13%, to $89.50 a barrel. Oil was little changed after Monday's decline as traders continued to assess a modest reduction in supply-side concerns.
Oil prices remained choppy on Tuesday as steady Middle Eastern crude exports and a planned G7 emergency stockpile release eased concerns over supply, although attacks by Yemen's Houthis on Saudi targets continued to keep traders alert to risks facing Gulf oil flows.
Supply concerns cooled after G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves. The group also pledged not to impose energy export restrictions following pressure from US President Donald Trump.
Crude oil price on October 6
Brent crude futures gained 20 cents to $100.54 a barrel, while US West Texas Intermediate crude futures rose 12 cents, or 0.13%, to $89.50 a barrel. Oil was little changed after Monday's decline as traders continued to assess a modest reduction in supply-side concerns.
Tensions persistAt the same time, the conflict between
Saudi Arabia and Iran-backed Houthi forces in Yemen continued to raise concerns about possible disruptions from Saudi Arabia, the region's largest oil exporter. Those concerns have persisted amid a stalemate in US-Iran talks.
Yemen's Houthis said on Monday that they had attacked several targets in Saudi Arabia, including King Khalid International Airport in Riyadh, an Aramco refinery in Rabigh and Abha airport. Saudi Arabia did not immediately confirm the attacks.
The Houthis also said they had launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and the Khurais area, describing the strikes as a response to 50 Saudi-led air and missile attacks on Yemen over the previous 12 hours. Saudi Arabia has not confirmed the attacks.
What's next?JPMorgan analysts said the outcome of the conflict remained difficult to assess, noting that there was uncertainty over how the situation could develop. When the war began, the bank had assumed that there were economic thresholds the US administration would not cross. Six months into the conflict, JPMorgan said several of those thresholds had been crossed, while there was still no clear exit strategy.
The risk of further supply disruptions has also increased the possibility of higher oil prices. Daan Struyven, co-head of global commodities research at Goldman Sachs, said recent attacks had shown that disruptions to shipping could spread and become more severe.
Goldman Sachs has outlined a scenario in which oil prices could rise to as much as $120 a barrel if attacks on vessels in the Middle East intensify. If exports return to normal, the bank expects oil prices to move back towards $80 a barrel.
Struyven told Bloomberg that shipping risks had become a key driver of oil prices. Goldman Sachs sees meaningful upside to crude prices and also expects natural gas and refined product prices to rise. Struyven said supply shocks in gas and fuels are larger than those in the crude market.