Key facts
- Oil prices rose nearly $3 on Tuesday due to supply disruptions.
- Loadings at Saudi Arabia's Yanbu port were suspended.
- Libya halted operations at three oil fields.
- The Houthi attacks on Saudi infrastructure have raised concerns about supply route persistence.
- Brent crude futures were up $2.81 at $108.49 a barrel.
- U.S. West Texas Intermediate futures were up $3.29 at $104.68 a barrel.
Oil prices surged by nearly $3 on Tuesday, with Brent crude futures nearing a four-month high, as disruptions at Saudi Arabia's Yanbu port and halted operations at three Libyan oil fields intensified supply concerns. Loadings at Saudi Arabia's Red Sea export terminal in Yanbu were suspended, and shipping industry sources reported that Riyadh had informed European customers of cancellations for some late-September crude cargoes. In Libya, the National Oil Corporation (NOC) stated that operations at three oil fields were suspended after protesting members of the Petroleum Facilities Guard shut a valve on the Hamada-Zawiya crude export pipeline. The Guard warned of further expansion if demands are not met, and the NOC indicated it may declare force majeure. These events follow recent attacks on Saudi infrastructure, including a Friday strike on the East-West Pipeline that forced its shutdown and threatens up to 4% of global oil supply. Goldman Sachs noted that the attacks could threaten remaining Yanbu exports, with repair assessments ranging from "very soon" to eight weeks, and suggested the escalation increases the probability of Brent rising above $120 a barrel. Hamad Hussain, senior climate and commodities economist at Capital Economics, commented that the Houthi attacks may be influencing market expectations about the conflict's severity and duration.