Saudi Tensions Send Crude Oil Prices on Wild Ride
The crude oil market experienced choppy trade on Tuesday as US participants returned after the Labor Day weekend. Initially, WTI and Brent benchmarks rose to USD 94.73/bbl and USD 99.46/bbl respectively, following a statement from Saudi Arabia's Energy Minister that energy facilities and utilities were hit by attacks. The Minister stated that some operations would be temporarily halted to ensure safety and continuity of operations.
However, after the initial surge, WTI pared its gains and settled USD 1.55 higher at USD 93.03/bbl. Brent also retreated, albeit slightly. Prior to the Energy Minister's statement, Yemeni forces had launched ballistic missile and drone attacks on targets in Saudi Arabia.
The US Strategic Petroleum Reserve (SPR) reported a decrease of about 1.2 million barrels to 285.4 million barrels last week, marking the lowest level since 1982.