Oil Prices Stabilize Amid Middle East Exports and Supply Risks
Oil prices showed minimal movement on Tuesday, stabilizing after earlier losses. Brent futures rose 26 cents to settle at $100.58 per barrel, while U.S. West Texas Intermediate (WTI) crude edged up one cent to $89.44. The market is balancing increased crude exports from the Middle East against ongoing supply risks, including attacks by Yemen’s Iran-backed Houthis.
Vitol’s CEO reported that around 12 million barrels per day of crude oil and 2 million bpd of refined products have left the Middle East in the past week. Saudi Energy Minister Prince Abdulaziz bin Salman noted that oil pumped through the East-West Pipeline reached 5.8 million barrels by Tuesday morning. Despite these increases, potential supply disruptions kept price declines in check.
Tensions escalated as Saudi airports in Jazan and Najran were targeted in attacks, injuring three people. Meanwhile, Saudi-backed forces in Yemen launched a major offensive against the Houthis. Separately, Ukraine’s President Zelenskiy warned of a potential ‘massive attack’ by Russia, which remains a key global oil producer. Sanctions on Russian energy have supported oil prices since the 2022 invasion.
The International Energy Agency is set to discuss details of a diesel stock release next week, as Europe and the U.S. aim to address shortages and high prices. The Group of Seven agreed to release 100 million barrels of diesel and crude from emergency reserves. Analysts are also watching for weekly storage reports from the American Petroleum Institute and the EIA, with estimates suggesting U.S. crude stocks increased by 1.7 million barrels last week.