Oil prices surged after deadly attacks in Saudi Arabia, including a drone strike on Saudi Aramco’s Shaybah field and an assault on King Fahd International Airport. Brent crude traded near $110 a barrel, while West Texas Intermediate hovered around $98. The US ordered some embassy personnel to leave the kingdom.
Despite the violence, crude exports through the Strait of Hormuz have accelerated, with tankers switching off transponders to avoid detection. However, refined product shipments remain constrained. Rebecca Babin of CIBC Private Wealth Group noted that ongoing conflict and post-midterm escalation risks are supporting prices.
Kuwait is exporting at pre-war levels, but more tankers are needed for jet fuel and diesel. Iran has increased attacks on shipping, and the US and Israel are planning renewed strikes after the midterm elections. Haris Khurshid of Karobaar Capital LP said prices may not fall without diplomatic progress.
In the US, distillate inventories rose by nearly 2 million barrels, while crude stockpiles dropped by over 3 million barrels, including 300,000 from the Strategic Petroleum Reserve. President Donald Trump is pushing measures to lower prices, including a diesel deal with Russia. A tanker carrying 40,000 metric tons of Russian diesel is set to sail to the US.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing