Oil Jumps $3 on Houthi Claims of Saudi Energy Attacks

Oil prices settled about US$3 a barrel higher on Thursday (Nov 12) after Yemen’s Houthis claimed attacks on Saudi energy infrastructure and shipping disruptions in the Strait of Hormuz threatened global supply, Reuters reported.

Brent futures settled at US$95.82 a barrel, up US$3.06 or 3.3%, while US West Texas Intermediate crude closed at US$88.74, up US$2.21 or 2.6%. Both benchmarks were still down about 2.5% for the week, according to Reuters.

Claims of attacks on Saudi sites

Trade was volatile, with crude selling off early before rebounding after the Iran-aligned Houthis said they had attacked a pumping station on the Saudi East-West oil pipeline, an oil facility in the Red Sea city of Yanbu and an Aramco building in Riyadh. The Saudi-led military coalition said it intercepted and destroyed two drones launched by the group, Reuters reported.

The claims could not be independently verified, and Saudi authorities had not immediately commented, Xinhua reported. Egypt and the Arab League condemned the continued Houthi attacks on Saudi Arabia, it said.

Iran’s military said four oil tankers were hit by explosions in the Strait of Hormuz after ignoring warnings, Reuters reported, adding that it could not immediately verify the accounts. The strait carried nearly one-fifth of the world’s crude oil before the US-Israeli conflict with Iran.

Other market drivers

Oil had fallen US$1 in early Asian trade before US President Donald Trump posted on social media that Washington did not need a deal with Iran, Reuters said. Ukraine also said its drones hit the Russian Baltic port area of Ust-Luga, a major oil, oil products and grain export outlet.

Timothy Snyder, chief economist at Matador Economics, said exchanges between Russia and Ukraine and IRGC attacks on shipping were “beginning to add … price pressure”.

Prices were weighed down by OPEC+ data showing crude production rose in October on higher Saudi output, and by US Energy Information Administration figures showing crude, gasoline and distillate inventories rose last week, Reuters reported.

What’s next after oil jumps

Washington is set to extend in the coming days a waiver allowing some foreign-flagged ships to carry oil and other commodities between US ports, four industry sources told Reuters. Ukraine peace talks between Russian President Vladimir Putin and US negotiators also began in the Kremlin, the agency said.

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