Yemen rebel missile attack on Saudi Arabia triggers oil price fluctuations, Brent crude oil rises more than 3%
Quick Look
- The Yemeni rebel youth movement launched a missile attack on Saudi Arabia on Thursday, triggering concerns about oil supply disruptions.
- International oil prices rose by about 3% in response, with Brent crude oil closing at $106.60 per barrel, the highest closing price since September 15.
- Although the United States and Iran discussed reopening the Strait of Hormuz, which caused prices to fall, diesel supply tensions continued.
AI-generated summary
Why It Matters
The civil war in Yemen has lasted for many years, with a long-term confrontation between the Saudi-led coalition and the Houthi armed forces (youth movement). Shipping security in the Red Sea has recently been threatened, and global energy supply chains have been put under pressure by the conflict in Ukraine and tensions in the Middle East. As a key energy variety, diesel's tight supply directly affects global industry and transportation costs.
International oil prices rose about 3% on Thursday (24th). (European News Agency file photo)
[Financial Channel/Comprehensive Report] The Yemeni rebel youth movement launched a missile attack on Saudi Arabia on Thursday (6th), triggering public concerns about oil supply interruptions. In response, international oil prices rose by about 3% to a one-week high. But oil trading fluctuated wildly after reports that the United States and Iran were discussing reopening the Strait of Hormuz, with prices falling from session highs.
"Reuters" reported that the November delivery price of New York West Texas Intermediate crude oil rose $2.45, or 2.7%, to close at $94.61 per barrel; the November delivery price of Brent crude oil rose $3.52, or 3.4%, to close at $106.60 per barrel.
Please read on...
Brent crude oil hit its highest closing price since September 15, while New York West Texas Intermediate crude oil rose for the first time in many days after falling 13% in the previous six trading days. The prices of the two major benchmark crude oils once surged by about 5% during the session.
The Saudi-led Yemeni coalition said it intercepted six ballistic missiles launched by the youth movement, blocking their attacks on Taif in the south and the Yanbu region on the Red Sea coast.
High-level talks between the European Union and the United States remain ongoing as diesel prices hit record highs in recent weeks due to supply disruptions. According to reports, the United States plans to ban diesel exports, and the European Union believes that such a move may cause damage to both parties. Analysts and market watchers warn that a U.S. ban on diesel exports will do little to ease energy prices and could instead exacerbate global supply constraints and further disrupt the economy.
Global diesel supplies are tight after Moscow banned diesel exports due to supply disruptions caused by Ukrainian attacks on Russian refineries and energy infrastructure. Iranian attacks on shipping and energy infrastructure in the Middle East have further exacerbated supply constraints.
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What to Watch
AI outlook — possibilities, not facts
International oil prices will remain within the range of US$90-110 per barrel in the next two weeks.
Likely · Within weeks
The United States will issue a final decision on diesel export policy within the next month
Possible · Within weeks
Open Questions
- Will the missile attack by the Yemeni rebels lead to an escalation of Saudi Arabia's retaliatory military operations?
- Can the discussions between the United States and Iran on the Strait of Hormuz be translated into a concrete agreement?
- Will the EU finally accept US export restrictions on diesel?
- How will the frequency and scale of Ukrainian attacks on Russian refineries develop?
