Houthis attack Saudi oil pipeline; Brent at highest since April
The Houthi militia reports attacks on oil facilities in Yanbu, the Rabigh refinery and the East-West pipeline. Brent ended the week at $116.72, up about 6% from a week earlier.
Symbolic image · Photo: Suresh Babunair / Wikimedia Commons, CC BY 3.0 (cropped and resized)
Yemen's Iran-backed Houthi militia said it again attacked energy facilities in Saudi Arabia on Saturday. The targets included an Aramco facility in Yanbu, the Rabigh refinery, pumping stations and the East-West pipeline, as well as several airports, it said. The Saudi-led coalition reported shooting down two ballistic missiles headed for Yanbu and Taif, according to Reuters. Saudi authorities did not directly address the Houthi claims. Saudi civil defense reported debris from intercepted missiles in places including Jeddah, Taif and Rabigh; it was initially unclear whether the attacks hit any targets.
Nervousness is running high in the oil market. North Sea Brent crude settled at $116.72 a barrel on Friday, up 3.1% and its highest close since late April; it gained about 6% over the week, according to FinanceFeeds. U.S. West Texas Intermediate crude stood at $103.27. Traders fear the United States and Israel could launch new strikes on Iran after the Nov. 3 U.S. midterm elections.
Brent's roughly 20% rise since early September is mainly due to a risk premium: volumes through the Strait of Hormuz have actually increased recently, according to analyst Andrew Lipow. The U.S. Energy Information Administration estimates that global oil inventories fell by an average of 1.9 million barrels per day in the third quarter.