WTI crude oil hits $100 as Saudi supply fears keep oil markets on edge

On Friday, October 23, US crude oil prices reached $100 per barrel, while Brent crude hovered above $113, as market participants grappled with fears surrounding Saudi Arabian supplies and new disruptions in Libya. At 1:08 pm Tokyo time, the US benchmark West Texas Intermediate (WTI) rose to $100 a barrel, up 53 cents, or 0.53 percent.

Brent crude was at $113.60, up 39 cents, or 0.34 percent. Murban crude climbed $4.20, or 3.81 percent, to $114.40. The data came after a turbulent morning, with Oilprice.com reporting Brent at $113.96 and WTI at $100.17 at 11:02 am in Tokyo. Saudi Arabia's tensions with Yemen's Iran-aligned Houthis were the main worry, as fighting intensified near Bab Al-Mandab, a critical shipping channel in the Red Sea.

Saudi Aramco had evacuated its headquarters in Dhahran the previous day, sparking fears about the safety of the world's largest crude exporter. Meanwhile, the closure of a pipeline valve in Libya connecting two oilfields to Zawiya port reduced output at both locations, according to the head of the country's National Oil Corporation.

This development added to concerns about potential supply disruptions. Higher oil prices are also straining government budgets, forcing Japan to consider reducing gasoline subsidies as early as December. Sustained high crude prices can put a strain on household budgets and public finances used to mitigate fuel costs.