Oil tops $110 as Houthi drone strike near Saudi Shaybah field rattles markets
Oil extended gains above $110 a barrel on Thursday after a Houthi drone attack near Saudi Aramco's Shaybah oilfield heightened concerns over supply disruptions as Yemen's rebels stepped up strikes on the kingdom's energy infrastructure. Brent crude rose 1.7 per cent, or $1.81, to $110.63 a barrel as of 7.36am UAE time. West Texas Intermediate gained 1.4 per cent, or $1.37, to $98.52. Two people…
Oil prices surged past $110 per barrel on Thursday following a Houthi drone strike near Saudi Aramco's Shaybah oilfield, heightening fears of supply disruptions due to Yemen's rebels intensifying attacks on the kingdom's energy infrastructure. Brent crude climbed 1.7%, or $1.81, to $110.63 per barrel as of 7:36 am UAE time, while West Texas Intermediate rose 1.4%, or $1.37, to $98.52.
The drone attack near Shaybah, one of the kingdom's largest oilfields, resulted in two fatalities and two injuries when debris from an intercepted drone fell near a processing plant, causing a fire outside the facility. Operations remained unimpacted. Shaybah, situated in the Empty Quarter close to the UAE border, generates roughly 1 million barrels of crude oil daily.
The assault occurred just before another strike on King Fahd International Airport in Dammam, which claimed one life and left eight persons injured, according to Saudi Arabia's civil aviation authority. The Houthis have not commented on the airport attack. These recent strikes follow a similar assault on Riyadh's main international airport earlier this month, marking the deadliest incident on the kingdom in over a decade.
Saudi Arabia's East-West pipeline, an essential alternative to the Strait of Hormuz, has also faced attacks. Crude flows were reportedly suspended on October 5 after a Houthi strike damaged a pumping station east of Riyadh. The pipeline, capable of transporting about 7 million barrels daily, carries crude from the eastern oilfields to Red Sea export terminals, enabling shipments to circumvent the Strait of Hormuz.
The United States has ordered non-emergency government personnel and their families to depart Saudi Arabia due to Houthi attacks on civilian airports and critical infrastructure. This escalating campaign is contributing to the heightened geopolitical risk in oil prices as attacks endanger Saudi production facilities and alternative export routes, already challenged by the Iran war.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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