Brent Slips 2% To $114 Amid Continuing Saudi Arabia-Houthi Tensions
Crude oil prices fell over 2% on Monday as investors assessed global supply risks amid Middle East tensions. Brent declined to $114.30 per barrel, while WTI slipped to $101. Despite the correction, concerns over Houthi attacks on Saudi infrastructure and potential supply disruptions continued to keep markets volatile
Global crude oil prices declined on Monday, retreating from nearly six-month highs as investors assessed supply risks amid escalating geopolitical tensions in the Middle East.
US West Texas Intermediate (WTI) crude futures dropped 2.2% to $101 per barrel, while Brent crude futures fell 2% to $114.30 per barrel.
The decline followed a strong rally in the previous session, when both benchmarks gained nearly $3 after attacks in Saudi Arabia raised concerns about potential supply disruptions.
Despite the correction, crude prices remained elevated as traders monitored developments across the region.
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Retreat After Sharp Weekly Gains
Brent crude gained approximately 6% last week, while WTI advanced 2.3%, reflecting concerns over the security of Middle Eastern oil infrastructure.
The latest decline provided some relief, although market participants remained cautious about further attacks affecting production facilities, export terminals and shipping routes.
Supply concerns intensified after the Houthis claimed responsibility for attacks on a Saudi airport and oil installations over the weekend.
Saudi Arabia reported intercepting additional missiles and drones on Sunday, while its main airport partially resumed operations following earlier damage.
As a major global crude exporter, Saudi Arabia plays a crucial role in international energy markets.
Any sustained disruption to its production or transportation infrastructure could tighten supplies and increase prices.
However, the market impact will depend on actual supply losses and efforts to contain the conflict.
US Releases Reserves
Saudi Arabia plans to begin storing crude oil in Singapore during the second half of 2027 to strengthen supply-chain resilience across Asian markets.
The initiative is expected to improve its ability to maintain deliveries during potential disruptions.
Separately, the US Department of Energy authorised the release of 400,000 barrels from the Strategic Petroleum Reserve.
The release aims to address a supply disruption at a Louisiana refinery.
Although limited in scale, the measure highlights efforts to manage localised supply pressures.
Investors will continue monitoring geopolitical developments, diplomatic efforts and energy infrastructure risks for further price movements.
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