October 26, World (LNW): Global oil prices edged lower on Monday following a strong rally towards six-month highs at the end of last week, although continued attacks targeting Saudi Arabia kept traders concerned about potential disruptions to crude supplies.
By 0018 GMT, US West Texas Intermediate (WTI) crude futures had dropped by $1.60, or 1.55 per cent, to $101.67 a barrel. Brent crude futures, the international benchmark, fell by $1.56, or 1.34 per cent, to $115.16 a barrel.
The pullback came after both benchmarks recorded gains on Friday, settling nearly $3 higher as renewed hostilities in Saudi Arabia raised concerns about the security of key energy infrastructure. Brent ended the week approximately 6 per cent higher, while WTI posted a weekly gain of 2.3 per cent.
Market sentiment remains fragile as fresh reports of attacks over the weekend have heightened uncertainty over the stability of oil supplies from the Middle East. Yemen’s Houthi group said it had targeted a Saudi airport and oil installations on Saturday, while Saudi authorities reported intercepting additional missiles and drones on Sunday.
The latest developments have kept attention firmly on the region, which plays a crucial role in global crude production and exports. Any sustained disruption to Saudi Arabia’s energy infrastructure could place further pressure on international markets, potentially pushing prices higher despite short-term declines.
Saudi Arabia, the world’s leading oil exporter, partially resumed operations at its main airport on Sunday after damage caused during an earlier wave of Houthi attacks. The move came amid threats from the group to continue targeting the facility, underscoring the security challenges facing the country.
Although Monday’s price movements suggest some easing after last week’s surge, the broader outlook remains uncertain. Traders are likely to monitor developments in Saudi Arabia closely, with the direction of oil prices depending heavily on whether the attacks intensify and whether energy production and transport operations remain uninterrupted.
