Solid Gold Berjangka - Global oil prices strengthened again in Friday’s trading session following a Houthi attack in Saudi Arabia, fueling concerns over potential disruptions to energy supplies from the Middle East. UKOIL is currently trading at approximately US$113.97 per barrel, while West Texas Intermediate (WTI) stands at around US$102.01 per barrel.
On a weekly basis, Brent is on track for its third consecutive weekly gain, having closed on Thursday at its highest level since May 4. Conversely, WTI remains at risk of a weekly decline, following two straight weeks of gains.
Tensions escalated after Saudi Aramco ordered the evacuation of its headquarters in Dhahran, a Gulf region located near Bahrain. This move comes as the conflict between Saudi Arabia and the Yemen-based Houthi group intensifies, raising concerns regarding the security of energy facilities in the world’s largest oil-exporting nation.
The market is also beginning to anticipate the risk of disruptions to oil shipping routes in the Persian Gulf and the Red Sea. Clashes between the Houthis and the Saudi-led coalition have intensified as the Iran-backed group has moved closer to the Bab el-Mandeb—a vital global shipping artery.
The future trajectory of oil prices will largely depend on the extent of actual disruptions to energy production and distribution, as well as the time required to restore operations. Should attacks persist and oil shipments face delays, a geopolitical risk premium is likely to remain, keeping oil prices elevated.
Supply pressures have also emerged from Libya, where a valve on a pipeline connecting the Hamada and Tahara oil fields to the Zawiya port has been shut. This has led to a decline in production from both fields, further heightening market concerns regarding global supply availability amid rising tensions in the Middle East. (srh)