On a Monday morning, oil prices eased back from the near six-month highs they had reached days earlier, though the fear that drove them up had not lifted. Houthi strikes against Saudi Arabia's airport and oil facilities continued through the weekend, and the world's largest oil exporter found itself intercepting missiles and drones while trying to keep its own supply lines moving. Against that uneasy backdrop, markets traded in the familiar rhythm of alarm and partial calm, with prices slipping modestly rather than collapsing. Whether this is a pause or a turning point depends on what the stri
Oil Slips From Near Six-Month Highs as Houthi Attacks on Saudi Arabia Keep Supply Fears Alive
A market that is jumpy but not in free fall
Mark
Oil fell on Monday. Does that mean the worry is fading?
Mimi
Not really. The drop is about 2%, and it comes right after a week where Brent rose 6%. The attacks on Saudi Arabia were still going over the weekend.
Luke
Worth being precise there. Prices fell, but we only have a few hours of Monday trading. That's one morning's reading, not a trend.
Mark
What actually happened over the weekend?
Mimi
The Houthis said they attacked the Saudi airport and oil facilities on Saturday. Saudi Arabia said on Sunday it intercepted more missiles and drones.
Luke
Both of those are statements from the parties involved. The report doesn't tell us what was actually hit or how much damage was done, so we shouldn't assume the claims line up.
Mark
The airport keeps coming up. Why?
Mimi
Saudi Arabia restarted partial operations there on Sunday after earlier damage, and the Houthis vowed to keep targeting it. So the reopening is fragile.
Mark
And the Singapore storage plan, does that help now?
Mimi
Not now. Storage there begins in the second half of 2027, and the stated goal is supply chain resilience in the region.
Luke
Same caution on the US reserve release. It's 400,000 barrels, tied to a Louisiana refinery disruption, not to the Saudi attacks. It shouldn't be read as a response to them.
El Pulso
- Brent slid about 1.8% to $114.60 and WTI fell roughly 2% to $101.13, a modest retreat after Friday's surge.
- Houthi strikes on Saudi airport and oil facilities continued through the weekend, keeping supply fears wired tight.
- Saudi forces reported intercepting more missiles and drones on Sunday, while the airport's partial reopening remains exposed to further attack.
- Saudi Arabia and Singapore have announced crude storage plans starting in late 2027, a long-range hedge that does nothing for today's market.
- A 400,000-barrel US Strategic Petroleum Reserve release addresses a Louisiana refinery problem, not the Saudi attacks, leaving the market jumpy but not in free fall.
On a Monday morning, oil prices eased back from the near six-month highs they had reached days earlier, though the fear that drove them up had not lifted. Houthi strikes against Saudi Arabia's airport and oil facilities continued through the weekend, and the world's largest oil exporter found itself intercepting missiles and drones while trying to keep its own supply lines moving. Against that uneasy backdrop, markets traded in the familiar rhythm of alarm and partial calm, with prices slipping modestly rather than collapsing. Whether this is a pause or a turning point depends on what the strikes do next and on whether the longer-term measures being planned can ease a supply anxiety that the present cannot yet resolve.
Oil opened the week lower on Monday, giving back some of the ground it had gained days earlier. US crude futures sat near $101 a barrel and Brent near $114.60, both down about 2% from Friday's close. The drop came without any sign that the cause of the rally had faded.
That cause was the Houthi campaign against Saudi Arabia. Prices had climbed nearly $3 on Friday, pushing both benchmarks close to their highest levels in six months, and Brent finished the week up 6%. The attacks did not stop over the weekend. The Houthis said they had struck the Saudi airport and oil facilities on Saturday, and on Sunday Saudi Arabia said it had intercepted more missiles and drones. Neither side's claims about damage have been independently confirmed.
The airport is the sharpest point of concern. Saudi Arabia, the world's top oil exporter, partially restarted operations there on Sunday after an earlier round of strikes, and the militant group has vowed to keep targeting it. The reopening stays exposed.
Two measures offered some longer horizon. Saudi Arabia and Singapore said on Monday that Saudi crude will be stored in Singapore from the second half of 2027, a step aimed at strengthening regional supply resilience, though it does nothing for present pressures. Separately, the US Energy Department authorized a release of 400,000 barrels from its Strategic Petroleum Reserve, but that was to address a Louisiana refinery disruption rather than the attacks.
The market, then, is jumpy rather than collapsing. What comes next depends on whether the strikes continue and whether Saudi operations hold.
Oil opened the week lower on Monday, giving back some of the ground it had gained days earlier, but the price drop came with no sign that the cause of the rally had gone away. By 0232 GMT, US crude futures were down $2.14, or 2.07%, at $101.13 a barrel. Brent crude futures had slipped $2.12, or 1.82%, to $114.60.
The retreat followed a sharp climb. Prices settled nearly $3 higher on Friday after Houthi attacks in Saudi Arabia raised fresh worries about energy supply, pushing both benchmarks to levels close to their highest in six months. For the week, Brent finished up 6% and WTI ended 2.3% higher.
The attacks did not pause over the weekend. The Houthis said they had struck the Saudi airport and oil facilities on Saturday. On Sunday, Saudi Arabia said it had intercepted more missiles and drones. The source reports these as claims and statements from each side, and does not independently detail what damage, if any, the latest strikes caused.
The airport has been a particular focus. Saudi Arabia, the world's top oil exporter, restarted partial operations at its main airport on Sunday after damage from an earlier round of Houthi attacks. The militant group, for its part, vowed to keep targeting the facility, so the reopening remains exposed to further strikes.
Against that backdrop, Saudi Arabia and Singapore announced a longer-term supply arrangement. Energy ministers from both countries said on Monday that Saudi Arabia will begin storing crude oil in Singapore from the second half of 2027. The stated aim is to strengthen the resilience of Saudi Arabia's supply chain in the region. The step is a matter of planning rather than an immediate relief for current markets, since it is still months away.
In the United States, the Energy Department said on Friday that it had authorized the release of 400,000 barrels of oil from the Strategic Petroleum Reserve. The release is meant to address a supply disruption at a Louisiana refinery, a specific and limited problem, not a response to the Saudi attacks.
Taken together, the picture is of a market that is jumpy but not in free fall. Monday's declines of around 2% are modest next to Friday's jump, and Brent remains well above $114 a barrel while WTI holds above $100. What happens next depends on whether the Houthi attacks continue, whether Saudi airport and oil operations stay running, and whether measures like the Singapore storage plan and Strategic Petroleum Reserve releases do anything to ease the pressure on supply.
Citas Notables
The Houthis said they had attacked the Saudi airport and oil facilities on Saturday, and vowed to keep targeting the airport.— Houthis, as reported by Reuters
Saudi Arabia said it had intercepted more missiles and drones on Sunday.— Saudi Arabia, as reported by Reuters
Quieres la nota completa?
Lee el original en The Star ↗
War & Conflict