Oil Prices Rise Following Houthi Attacks in Yemen
Oil prices rose in global markets due to attacks by Houthis in Yemen on Saudi Arabian facilities and expectations of rising Russian diesel exports.
Oil prices recorded an increase on Wednesday as attacks by Houthis in Yemen against Saudi Arabia heightened supply risks, alongside expectations that diesel exports from Russia will rise. Both Brent crude and WTI barrel prices followed an upward trajectory.
Supply Risks and Price Increase
The intensification of supply risks driven by conflicts between the Iran-backed Houthis in Yemen and Saudi Arabia played a significant role in driving prices up in the markets. Brent crude futures rose 0.8% to $106.58 per barrel, while U.S. crude increased by 0.9% to reach $94.94.
Attack on Saudi Aramco Facility
The Saudi Arabian Ministry of Energy announced that the Houthis attacked an administrative building belonging to the state oil company Saudi Aramco in the eastern city of Dhahran, causing a limited-scale fire. In attacks carried out by the Houthis over the past week, Riyadh International Airport was also targeted.
Expert Assessments and OPEC Data
Nissan Securities Investment Chief Strategist Hiroyuki Kikukawa stated that supply concerns are pushing prices up, though expectations of increased Russian diesel exports could alleviate tightness in the market. Meanwhile, according to OPEC data, Saudi Arabia increased its oil production last month.