Crude Oil Prices Swing on Geopolitical Tensions and Pipeline Reports

The crude oil market closed the day with losses, despite volatile trading influenced by several key developments. Early gains were triggered by reports from AFP that Saudi Arabia's East-West oil pipeline had halted operations following a new attack. However, these gains were quickly erased after Bloomberg cited sources confirming that the pipeline was flowing normally.

Later in the session, oil prices received another boost from two separate supply disruptions. First, reports emerged of a "massive explosion" at an oil refinery in Jeddah, Saudi Arabia. Second, Yemeni Houthi forces claimed to have struck Saudi Arabia's Ras Tanura refinery, which has a capacity of 550,000 barrels per day (BPD), with missiles.

Positive geopolitical updates briefly tempered the upside, as a Yemeni Houthi leader reportedly called for a truce, stating, "no one benefits from war." Additionally, Iran's Interior Minister traveled to Doha for talks, raising hopes of de-escalation. However, Houthi media disputed the truce claims, casting doubt on the prospects for a lasting ceasefire. Meanwhile, Yemeni government forces asserted control over the strategic Bab al-Mandab region, though the Houthis contested this claim.

Throughout the day, WTI crude prices fluctuated between USD 88.88 and 91.88 per barrel, while Brent crude ranged from USD 99.90 to 103.40 per barrel. Traders remain on edge, awaiting further updates on the geopolitical situation and its potential impact on oil supply.