Oil slips as investors assess Saudi export recovery

Brent crude prices experienced a slight decline on Monday, Sep 21, as investors considered a potential resurgence in shipments from Saudi Arabia, despite escalating tensions in the Middle East caused by Yemeni Houthis' attacks. The oil prices dropped 81 cents, or 0.78%, to $103.06 a barrel, with West Texas Intermediate crude settling at $99.41 a barrel.

These price fluctuations were attributed to ongoing attacks by Iran-backed Houthis on Saudi Arabia's sensitive sites and oil facilities. In response, Saudi Aramco intensified oil exports through the Strait of Hormuz, boosting output to over 4 million barrels per day in September, up from 2.4 million bpd in August. JPMorgan analysts noted that Middle East oil flows, averaging 17.1 million bpd in the past 10 days, were significantly above the 2025 average of 6.1 million bpd.

Saudi Arabia, in particular, has shown increased oil movement towards the Hormuz Strait, with satellite data averaging 2.9 million bpd over the past six days. China has requested Iran's assistance in curbing the Houthis, following a request from Saudi Arabia, while Iran and the US exchanged new threats amid the geopolitical situation.