Oil Prices Rise as Attacks on Saudi Energy Facilities and Middle East Tankers Heighten Supply Fears

According to Reuters, Brent crude futures settled up 37 cents, or 0.35%, at $106.06 a barrel. US West Texas Intermediate crude gained 95 cents, or 1.01%, to $95.09, a three-week high.[1]Saudi Arabia's energy ministry said the Houthis attacked an administrative building belonging to state-owned oil company Saudi Aramco in the city of Dhahran, causing a limited fire[2], Reuters reports. Reuters also reports that Riyadh's international airport has been hit four times, with a strike on Saturday killing 13 people.[2]Iran's Revolutionary Guards Navy said a container ship sank in waters south of the Strait of Hormuz after hitting a naval mine and catching fire[2], according to Reuters. According to Reuters, Iranian officials declined to provide details of the new strategy to target ships, but one said Iran had started using different offensive tactics about 10 days ago.[2]Phil Flynn of the Price Futures Group told Reuters, "We're seeing a lot of fear trade today."[1]EnergyNow reports that the attacks on Saudi facilities and tankers are outweighing expectations that increased Russian diesel exports could ease global fuel shortages.[3] Reuters reports that the International Energy Agency said constrained diesel supplies could persist well into next year[2].According to Reuters, Gulf oil flows excluding Iran surged in September to more than 81% of prewar levels, data showed, led by a recovery in Saudi exports.[1]