Oil prices rise by nearly USD2

Oil prices surged by nearly USD2 a barrel on Monday as assaults on Saudi Arabia overshadowed the potential for increased supplies. Brent crude futures climbed USD1.93, or 1.8 percent, to USD106.65 a barrel, peaking since September 15. Meanwhile, US West Texas Intermediate crude rose USD1.89, or 2 percent, to USD93.74 a barrel. The Houthis claimed responsibility for a Saturday attack on Saudi Arabia's international airport, resulting in 13 deaths and over 300 injuries.

Additional strikes occurred on Sunday, exacerbating the conflict that could further disrupt crude oil supplies from the world's leading producer.

Investors and analysts expressed concern over the impact of the Houthi missile attack on Saudi Arabia's Riyadh airport, which temporarily closed five refineries. Further attacks on tankers in the Strait of Hormuz heightened worries about a decline in Middle East crude exports. Goldman Sachs raised its Brent price forecast for December to USD90 a barrel, anticipating a risk premium of over USD20 a barrel.

WTI prices were expected to remain lower than Brent due to high US-Europe shipping costs and average USD81 by December 2026 and USD73 in 2027.

Meanwhile, Russian diesel prices fell 2.3 percent to USD1,449 per metric ton after Donald Trump announced that Russia would supply more than 300,000 metric tons (2.25 million barrels) of diesel to US and global markets. However, analysts suggested this immediate impact may not significantly impact prices, as Russia's refining capacity has been severely reduced.

The International Energy Agency's Fatih Birol advised all members to evaluate the need for additional diesel releases, prioritizing those that have not yet fulfilled their pledged volumes.