Oil Prices Jump 2% on Saudi Attacks as OPEC Sees Demand Rebound
Oil Prices Jump 2% on Saudi Attacks as OPEC Sees Demand Rebound Oil prices climbed to their highest levels in nearly two weeks on Monday morning as fresh attacks on Saudi Arabia and oil tankers near the Strait of Hormuz put Middle East supply risks back at the center of the market, outweighing President Donald Trump's announcements of additional Russian diesel supplies and a Russia-Ukraine energy ceasefire.
West Texas Intermediatewas trading at $93.78 per barrel, up $1.93, or 2.10%, on Monday morning, whileBrent cruderose $2.09, or 2.00%, to $106.80 per barrel, according to Oilprice.com data.
The renewed buying followed a weekend of attacks on Saudi Arabia, including aHouthi strike on Riyadh's international airporton Saturday that killed 13 people and wounded more than 300.
Further attacks were reported Sunday, while two tankers were struck near Oman and in the Strait of Hormuz.
The tanker attacks threaten to interrupt therecovery in Gulf oil exports, which reached 81% of prewar levels in September.
Crude and condensate shipments had recovered to 91%, but refined-product exports remained at just 60%.
Goldman Sachsraised its December Brent forecast to $90 per barrel from $85, estimating that geopolitical risks are currently adding just over $20 per barrel to oil prices.
The price increase comes as OPEC has sharply reduced its expectations for global oil demand growth this year.
OPEC Secretary General Haitham Al Ghaissaid Mondaythat the producer group now expects demand to grow by just 400,000 barrels per day in 2026, down from the 1.4 million bpd it forecast at the beginning of the year.
OPEC expects much of the demand deferred during this year's disruptions to return in 2027.
The group had already cut its 2026 growth estimate to 380,000 bpd in September, meaning Monday's 400,000-bpd figure is actually a slight increase from last month's forecast even though it represents a 1-million-bpd reduction from OPEC's outlook at the beginning of the year.
TheInternational Energy Agencyexpects an even deeper demand hit this year, forecasting a 2.5-million-bpd decline in global consumption in 2026 followed by a 2.6-million-bpd rebound in 2027.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment