The price of Brent oil reached $114 per barrel, indicating an increase of about $6 this week. West Texas Intermediate (WTI) crude oil has also risen from around $99 to over $100 today. This price increase has occurred following heightened tensions in the Middle East, particularly the Houthi attacks on Saudi Arabia's energy infrastructure.
Houthi Attacks and Aramco's Response
Recent Houthi attacks on Aramco facilities, including the company's main center in Dhahran, have raised serious concerns in the oil market. These attacks demonstrate the new capabilities of the Houthis in using long-range weapons, which previously focused more on attacks in the Red Sea and Saudi ports. In response to these threats, Aramco has announced that it is evacuating its employees from its center in Dhahran, clearly indicating a critical security situation in the region.
Read more: Aramco Evacuates Its Headquarters
Impact on the Oil Market
At the same time, the National Oil Corporation of Libya has also reported the shutdown of an oil pipeline that transports oil from two fields to the Zawiya export terminal. This shutdown has led to a reduction in production at these two fields and increased pressure on the oil market. The ING commodity strategy team stated in a note that markets are highly concerned about a renewed escalation of tensions in the Gulf, a situation that could threaten oil flows that have so far maintained relative stability.
Additionally, reports indicate that U.S. President Donald Trump is considering new attacks against Iran. Meanwhile, the United States has strengthened its military presence in the region by deploying a new aircraft carrier. Analysts have also pointed out that threats arising from escalating tensions between the United States and Iran have weakened hopes for improvement following the U.S. midterm elections.
For this reason, ING analysts have revised their Brent oil price forecast for the fourth quarter of this year, stating that an average price of $80 per barrel now seems unattainable. These developments indicate the unstable state of the oil market and its impacts on the global economy.
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