Oil little changed as supply concern lingers amid Houthi attacks on Saudi Arabia

Oil prices remained largely unchanged in early Asian trade on Friday, despite a 4% increase the previous day due to fears of further supply disruptions following Houthi attacks on Saudi Arabia, the world's top exporter. Brent crude futures fell 21 cents, or 0.2%, to $112.96 a barrel at 0030 GMT, while US West Texas Intermediate crude declined 27 cents, or 0.3%, to $98.12.

However, WTI was on the verge of ending a two-week upward trend and closing lower for the week. Brent crude, which had hit its highest level since May 4 on Thursday, was expected to continue its climb for a third consecutive week. In response to the escalating conflict, Saudi Aramco evacuated its headquarters in Dhahran on the Gulf near Bahrain on Thursday, as reported by Reuters.

The fighting between Saudi Arabia and the Iran-aligned Houthis, who had advanced towards Bab el-Mandeb, a critical shipping lane at the Red Sea's entrance, had intensified. Additionally, a pipeline valve connecting the Hamada and Tahara oilfields in Libya to the Zawiya port was closed, resulting in reduced output from both fields.

The National Oil Corporation in Libya informed Reuters of this development on Thursday. Meanwhile, Russia expressed readiness to resume US-mediated talks with Ukraine next month, following a meeting between President Vladimir Putin and US envoy Steve Witkoff in St Petersburg. Ukrainian President Volodymyr Zelenskiy expressed optimism that negotiations, the first since February, would commence early in November.

As the world's third-largest crude oil producer, Russia, behind the US and Saudi Arabia in 2025, according to US energy data, its involvement in the global oil market continues to impact prices, especially with sanctions limiting Russian energy exports since Russia's invasion of Ukraine in 2022.