Brent Crude Erases Gains

Brent crude fluctuated around $106 a barrel on Wednesday, as investors weighed improving export flows against renewed attacks across the Middle East. The US said it helped facilitate the shipment of more than 19 million barrels of crude through the Strait of Hormuz, offering some reassurance that supplies were continuing to move despite the conflict. Saudi Arabia increased production, with September output rising by roughly one-third from its previous level. Meanwhile, security concerns have intensified following missile and drone attacks by Iran-backed Houthi forces on several Saudi locations, including the Saudi Aramco office complex in the east of the kingdom. The latest strikes have increased pressure on Washington to support its regional ally and heightened uncertainty over the recovery in Gulf energy shipments. Iranian attacks on tankers passing through the Strait of Hormuz are adding further risks to supply stability.

Brent crude rose above $106 per barrel on Wednesday, recouping losses from the previous session as escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels intensified concerns over Middle East supply disruptions. On Tuesday, Yemen’s Houthi militants struck Saudi Aramco’s headquarters in Dhahran, eastern Saudi Arabia, with a missile attack that sparked a fire in part of the complex. The rebels also targeted Riyadh’s main airport over the weekend, while a Saudi-led coalition launched an offensive to retake rebel-controlled territory in Yemen. Meanwhile, Tehran has intensified attacks on tankers transiting the Strait of Hormuz, although the US said it had helped facilitate the passage of more than 19 million barrels of crude through the strategic waterway. In Europe, President Trump defended his diesel export agreement with Russia, stating that the additional supplies would enter the global market and help ease elevated prices.

Brent crude pared earlier losses to trade over $106.5 a barrel on Tuesday amid concerns over supply risks linked to the conflict between Saudi Arabia and the Iran-backed Houthis. The militants have stepped up attacks on Saudi Arabia since last week, targeting energy facilities and airports. The Houthis attacked King Khalid International Airport in Riyadh on Saturday, while a Saudi-led coalition said it intercepted a ballistic missile fired toward the capital on Monday. Meanwhile, Iran is fortifying sensitive sites, including nuclear facilities, and rallying supporters amid concerns over possible renewed US attacks after the November midterm elections. In contrast, prospects for additional Russian energy supplies to global markets limited oil’s gains. An agreement would allow Russia to supply diesel to the US and other markets for six months. However, Goldman Sachs said the additional Russian diesel supplies were unlikely to significantly ease pressure on global fuel prices.