Commodities
US crude tops $103 as Houthi strikes on Saudi Arabia outweigh Russian supply relief
Oil swung from losses to gains as attacks on Saudi targets revived supply fears.
HedgeWeekly News Desk ·
West Texas Intermediate crude rose more than 2% to around $103.70 a barrel on Monday after Houthi forces claimed six attacks on Saudi oil and airport targets. Prices had fallen earlier in the day after a US executive order waived some Russia-related sanctions, raising expectations of more Russian supply. At that point Brent was near $107.60 and WTI below $100.
The attacks follow weeks of strikes on Saudi infrastructure, including an Aramco building in Dhahran. Saudi Arabia has postponed its Future Investment Initiative conference to 2027, citing the attacks. Shipping through the Strait of Hormuz also remains a risk.
Oil above $100 feeds straight into US inflation and makes the Federal Reserve's job harder ahead of its October 28 meeting. Energy is one of the main reasons inflation has stayed stuck above target.