Saudi Attacks Spark Oil Price Volatility Fears
Oil prices may face renewed volatility due to ongoing supply and geopolitical concerns following weekend attacks on Saudi Arabia, according to OCBC's Christopher Wong.
The Houthis claimed missile and drone strikes on Riyadh and an Aramco facility at Yanbu, although the Saudi authorities reported no new infrastructure damage. However, existing pipeline issues and disrupted Yanbu loadings underscore ongoing disruption risks, suggesting near-term downside in Brent and WTI may be limited unless Saudi flows normalise and attacks subside.
The East-West pipeline is already damaged, and Yanbu loadings have been disrupted, contributing to the uncertainty surrounding oil prices. Brent had eased to around $105/bbl on Friday as supply concerns moderated, but the weekend developments are a reminder that disruption risks remain.