Oil price volatile as Houthi attacks renew supply crunch fears
Oil prices steadied after rising early on Friday, following an escalation in attacks on Saudi Arabia by Yemen's Houthi rebels that renewed supply fears in the market. Brent, the benchmark for two thirds of the world's oil, was down 0.68 per cent at $81.93 a barrel at 2.34pm UAE time. The price swung above and below the $80 mark for most of the week. West Texas Intermediate, the gauge that tracks…
Oil prices experienced significant volatility on Friday, following renewed fears of supply disruptions due to escalating attacks by Houthi rebels in Yemen on Saudi Arabia. The benchmark Brent crude, representing two-thirds of the world's oil, fell by 0.68% to $81.93 per barrel. West Texas Intermediate, which tracks US crude, also declined by 0.39% to $76.99 per barrel.
Houthi attacks on the southern region of Saudi Arabia resulted in 11 civilian injuries and a blockade of the Red Sea, disrupting oil exports. This escalation comes as the Iran war continues, nearing six months in duration. Talks between the US and Iran about potential agreement on shipping in the Strait of Hormuz, which could lead to a drop in oil prices, showed some promise this week.
However, the physical situation did not improve, and Iranian hardliners threatened to sabotage any deal, causing oil prices to rebound. The ripple effects of the war on global oil prices have made it challenging for governments, energy companies, and analysts to predict market trends. Opec+ recently agreed to increase crude output for a sixth consecutive month in September, while monitoring the situation closely.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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