Oil: Supply risks linger despite recovering Saudi flows - OCBC
OCBC’s Christopher Wong observes that weekend attacks targeting Saudi Arabia have revived supply and geopolitical concerns in Oil markets.
Supply and geopolitical concerns have resurfaced in oil markets following weekend attacks on Saudi Arabia, according to OCBC’s Christopher Wong. While the kingdom confirmed no new infrastructure damage, existing pipeline issues and disrupted Yanbu loadings highlight continued disruption risks. This suggests near-term downside in Brent and WTI prices may be limited unless Saudi flows return to normal and attacks cease.
Despite the attacks, oil prices saw some support, with Brent falling to around US$105/bbl on Friday as supply concerns eased. However, the weekend events serve as a reminder that disruption risks persist. For now, further oil price declines appear unlikely unless Saudi flows normalize and attacks on energy infrastructure end.
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Also reported by 1 other outlet
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