Oil slides after China asks Iran to limit Houthi attacks on Saudi oil facilities

Oil prices slid after China urged Iran to curb Houthi attacks on Saudi oil facilities. Brent crude futures closed at $103.87 a barrel, while USWTI crude ended at $100.30 per barrel. Over the week, Brent dropped 0.7 percent, whereas WTI rose by 0.2 percent. Oil prices have been on an upward trajectory in recent weeks due to the resumption of attacks between the US and Iran, along with Houthi military activities.

This surge, combined with global refining capacity constraints, has driven up the prices of essential fuels like diesel in key markets.

Despite China's reported intervention, experts maintain that the future outlook remains uncertain. The Strait of Hormuz continues to be largely blocked, with only four cargo ships navigating through on Thursday. Asian spot prices for liquefied natural gas (LNG) achieved a record 45-month high this week as conflict-related disruptions in the Middle East and robust South Asian demand throughout winter continue to support prices and intensify competition with European markets.

The average LNG price for October deliveries into northeast Asia reached $27.00 per million British thermal units, up from $26.00 per mmBtu the previous week.

Global spot gas prices remained high over the past week, as both Europe and Asia compete for cargoes, driven by growing expectations that the supply situation will persist into the winter season. In Europe, the Dutch TTF gas price settled at $26.62 per mmBtu, marking a weekly decline of 1.5 percent. The physical LNG market was comparatively buoyed by ongoing concerns about Europe's storage levels, which stood at around 68.5 percent full, and the necessity to secure winter supply.