Middle East Tensions Keep Oil Prices Above $107

Oil prices remain steady as tensions in the Middle East persist, with Brent crude trading above $107 per barrel. The conflict has escalated into a regional crisis, sparked by US-Iran confrontation and the targeting of Saudi Arabia's military facilities by Yemen's Iran-aligned Houthi militants.

The Houthis have hit Riyadh's 1,200 km East-West Pipeline, which is a crucial alternative to export crude through the Red Sea terminal at Yanbu, bypassing the Strait of Hormuz. Analysts from ING Bank note that 'Oil prices remain firmly supported, with that floor unlikely to give way until markets get clearer visibility on Saudi supply after the East, West pipeline shutdown.'

While there are no significant downward pressures on Brent's price, market analysts will keep an eye out for US crude stocks data scheduled for release later this week. A build in US crude stocks typically indicates lower demand for oil and can put some pressure on Brent's price.