Saudi Supply Recovery Eases Oil Prices Amid Houthi Attacks

Oil prices fell on Monday as investors focused on signs of a recovery in Saudi Arabian crude shipments, even as attacks by Yemen's Iran-backed Houthis added to tensions in the Middle East and the US-Iran stalemate.

The Brent crude futures price dropped 81 cents, or 0.78%, to $103.06 a barrel at 0031 GMT, after settling 0.91% lower on Friday. Meanwhile, US West Texas Intermediate (WTI) crude was down 89 cents, or 0.89%, at $99.41 a barrel, following a 1.58% decline in the previous session.

The Houthis claimed to have targeted 'sensitive' sites in Saudi Arabia's capital Riyadh with missiles and drones on Saturday, as well as an Aramco facility in Yanbu, a key oil export hub on the Red Sea. However, despite these attacks, Aramco has increased exports through the Strait of Hormuz this month and next.

Saudi exports have recovered to just over 4 million barrels per day (bpd) so far in September, after falling to 2.4 million bpd in August, according to provisional data from analytics firm Kpler.