Oil settles higher after Saudi strikes stoke supply worries
Oil prices settled approximately 1 per cent higher on Monday following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East. Crude benchmarks initially jumped almost 5 per cent and rose more than $3 before retreating from session highs. Market volatility stems from a key Saudi pipeline outage that removes as much as 4% of global oil supply from the market. While prices extended gains due to Houthi and Iranian activity, hopes for diplomacy with Iran helped pare some of the initial increases.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ Oil prices settled about 1 per cent higher on Monday.
- ✓ Crude benchmarks jumped almost 5 per cent before retreating.
- ✓ New strikes targeted Saudi Arabian energy infrastructure.
- ✓ Attacks occurred against ships in the Middle East.
What changed
Houthi strikes on Saudi Arabia and Iranian attacks on Gulf ships caused a spike in crude benchmarks.
Live updates
-
Oil Prices Rise After Houthi Strikes and Saudi Pipeline Closure
Oil prices settled approximately 1 per cent higher on Monday following new strikes on Saudi Arabian energy infrastructure and attacks on ships in the Middle East. Crude benchmarks initially jumped almost 5 per cent and rose more than $3 before retreating from session highs. Market volatility stems from a key Saudi pipeline outage that removes as much as 4% of global oil supply from the market. While prices extended gains due to Houthi and Iranian activity, hopes for diplomacy with Iran helped pare some of the initial increases.
Why it matters
The surge toward $100 oil has put central banks on alert regarding inflation. Disruptions in the Strait of Hormuz and the Gulf threaten critical energy transit corridors. Stability depends on whether diplomatic efforts can offset the physical loss of Saudi production capacity.
What is confirmed
- Oil prices settled about 1 per cent higher on Monday.
- Crude benchmarks jumped almost 5 per cent before retreating.
- New strikes targeted Saudi Arabian energy infrastructure.
- Attacks occurred against ships in the Middle East.
- Oil prices increased by more than $3.
Still unconfirmed
- A Saudi pipeline outage has removed as much as 4% of global oil supply from the market.
- Oil prices reaching $100 has put central banks on inflation alert.
- Houthi forces were responsible for the strikes on Saudi Arabia.
- Iran carried out attacks on ships in the Gulf.
What to watch next
- Diplomatic negotiations between the U.S. and Iran
- Official confirmation of the total volume of the Saudi pipeline outage
- Central bank statements regarding inflation and oil prices
confidence 90%Sources used for this update (7)
- Reuters — Oil prices jump more than $3 after new strikes on Saudi, Strait of Hormuz
- The New York Times — Oil Prices Jump on Energy Supply Worries
- Crude Oil Prices Today | OilPrice.com — $100 Oil Puts Central Banks Back on Inflation Alert
- Investing.com — Oil pares gains on Iran diplomacy hopes, amid focus on key Saudi pipeline closure
- www.cnbc.com — Oil extends gains following Houthi strikes on Saudi Arabia
- www.channelnewsasia.com — Oil settles higher after Saudi strikes stoke supply worries
- www.businesstimes.com.sg — Oil climbs as Saudi pipeline outage, fresh Houthi attacks stoke supply fears
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community