Brent crude hit a five-month high of $111.99 a barrel on Tuesday. Traders reacted to Houthi claims of attacks on Saudi energy sites. They also weighed reports of strikes on ships in the Gulf. However, prices eased later in the day. Brent settled down 76 cents, or 0.69%, at $108.79.
Why Brent crude hit a five-month high
Yemen’s Houthis said they hit an Aramco site in Yanbu and the Shaybah oilfield. They also claimed strikes on airports in Riyadh and Abha. Saudi authorities did not confirm the claims, and Reuters could not verify them.
Meanwhile, ship tracker Kpler counted reports of attacks on at least 18 vessels over two weeks. As a result, ING said the market is pricing in “a significant risk premium”. Separately, a Houthi attack in Yemen’s Shabwa province killed 58 people.
Prices then slipped as Iran’s president met Pakistan’s army chief, a key mediator with Washington.
WTI and what to watch
The November WTI contract expired down $1.87, or 1.8%, at $101.79. Earlier, it touched $110.48. The more active December contract settled 72 cents lower at $97.82.
Next, traders will watch US stock data. Analysts polled by Reuters expect crude stocks fell by about 800,000 barrels last week. In addition, Washington wants US refiners to run more crude.
On Monday, Brent fell on a US sanctions waiver for Russia. See our report on that move.
