Saudi Oil Exports Rebound Amid Ongoing Middle East Tensions
Oil prices have taken a hit as investors assess the impact of Saudi Arabia's export recovery. Despite ongoing attacks by Yemeni Houthis, shipments from the Middle East seem to be on the mend. Brent crude futures dropped 81 cents, or 0.78%, to $103.06 a barrel after settling down 0.91% on Friday.
US West Texas Intermediate crude was at $99.41 a barrel, down 89 cents, or 0.89%, following a 1.58% loss in the previous session. The attacks by the Houthis have disrupted Saudi Aramco's East-West pipeline, prompting the state energy firm to increase exports through the Strait of Hormuz.
Saudi oil flows are now averaging 2.9 million barrels per day over the past six days, up from just 700,000 bpd in August. JPMorgan analysts say 'Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline.'