Oil prices fell on Monday as investors focused on a recovery in Saudi Arabian shipments despite continued attacks by Yemen’s Houthis and the wider stalemate between the US and Iran.
Brent crude futures fell 81 cents, or 0.78%, to US$103.06 a barrel at 0031 GMT, after settling 0.91% lower on Friday. US West Texas Intermediate crude fell 89 cents, or 0.89%, to US$99.41 a barrel after declining 1.58% in the previous session.
Saudi Arabia’s oil exports have started to recover after the Houthis attacked facilities linked to state oil company Saudi Aramco, including its East-West pipeline.
Aramco has responded by increasing shipments through the Strait of Hormuz this month and next after some exports through the Red Sea port of Yanbu were halted.
Provisional data from analytics firm Kpler showed Saudi oil exports had recovered to just over 4 million barrels per day in September, up from 2.4 million bpd in August. The August figure was the lowest since at least 2013.
“Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia’s East-West pipeline,” JPMorgan analysts said in a Sept 18 note.
The analysts said total oil flows averaged 17.1 million bpd over the past 10 days, while highlighting Saudi Arabia’s shift towards shipments through the Strait of Hormuz.
Satellite data showed Saudi oil flows through the waterway averaged 2.9 million bpd over the past six days, compared with just 700,000 bpd in August.
The recovery in Saudi shipments comes despite fresh attacks. The Houthis said on Saturday they had targeted “sensitive” sites in Riyadh with missiles and drones as well as an Aramco facility in Yanbu, a key oil export hub.
China has also asked Iran to help rein in the Houthis after Saudi Arabia appealed to Beijing, according to Iranian sources cited by Reuters.
Meanwhile, Iran and the US exchanged fresh threats on Sunday as negotiations remained stalled. US President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the United Nations General Assembly in New York this week.
Iran has also conveyed conditions to mediators for restarting negotiations aimed at ending its war with the US, according to Al Jazeera, which cited Iran’s security chief Mohsen Rezaei.
Reuters
