Oil reverses its early slide as Gulf supply risks return to focus
WTI turned higher after morning losses; Reuters reported renewed Houthi claims about Saudi targets.
Oil's early retreat gave way to an afternoon rebound. U.S. West Texas Intermediate crude rose to $103.09 a barrel at 1:08 PM ET Monday, up 1.66%, while Brent edged up to $110.03 after falling more than $3 earlier in the session, per Reuters. Those are Reuters' early-afternoon quotes, not closing settlement prices. It was a reversal from the morning's pullback.
Reuters reported that Yemen's Houthis said they had attacked Saudi energy, airport and military targets, including an Aramco facility at Yanbu and the Shaybah oilfield. Saudi authorities had not immediately confirmed those claims, and Reuters said it could not independently verify them. The claims are not confirmation that those facilities were hit.
Trading conditions also mattered. Per Reuters, volume was concentrated in the more liquid December WTI contract ahead of the front-month contract's October 20 expiry. The $103.09 quote was for the expiring front month; it should not be confused with the price of a later contract.
The Russian-energy sanctions waiver remains part of the supply picture. Per Reuters, Phillip Nova analyst Priyanka Sachdeva said it did little to address physical disruptions in the Strait of Hormuz. Monday's reversal puts that tension back in view: the prospect of more fuel exports is different from getting tankers safely through the Gulf.
