Oil Prices Fall Below $102 Amid Ongoing Saudi-Yemen Tensions
Oil prices have fallen for the fourth consecutive day, reaching below $102 per barrel on Monday. The decline comes despite hopes of a recovery in Saudi Arabian shipments after attacks by Yemen's Iran-backed Houthis continued to raise tensions across the Middle East.
The Houthis said they had targeted 'sensitive' sites in Riyadh with missiles and drones, as well as an Aramco facility in Yanbu on the Red Sea. The disruptions have led to a rise in exports through the Strait of Hormuz this month and next.
Saudi Arabia's exports have recovered to over 4 million barrels per day (bpd) so far in September, up from 2.4 million bpd in August. JPMorgan analysts noted that Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline.
However, risks remain high as Iran and the US traded fresh threats on Sunday, with Wall Street major JPMorgan admitting it has lost clarity on where oil prices are headed.