Oil Prices Surge Above $111 as Houthis Strike Saudi Targets

Oil prices surged above $111 per barrel on Tuesday, driven by a series of Houthi attacks on Saudi Arabian targets. The U.S. government ordered non-emergency personnel to leave the kingdom, further fueling concerns over the unstable security situation in the region. As of the latest data, Brent crude was trading at $111.10 per barrel, while West Texas Intermediate stood at $98.98 per barrel, both up by around 2% from the previous Wednesday.

In addition to the attacks, Iranian media reported explosions in the southern part of the country, though the nature and origin of these incidents were not specified. Iran's foreign minister, Abbas Araqchi, wrote in an op-ed for the Financial Times that Iran was prepared to defend itself and suggested the chances of a peace deal were slim. Araqchi noted the U.S. administration's lack of sincerity in its desire for peace, citing two instances where the U.S. attacked Iran during nuclear deal negotiations.

Iranian President Masoud Pezeshkian echoed similar sentiments, stating that peace talks could not proceed as long as the United States maintained a blockade on Iran and issued threats against the country. With these developments, the prospect of peace in the Middle East remains remote, with significant implications for oil and gas trade.

ING's commodity analysts noted that Kuwait's daily oil production surpassed 2 million barrels, a positive development. However, the update from the chief executive of Kuwait Petroleum Corp also highlighted persistently low fuel production, which remains significantly lower than pre-war levels.