Oil Prices Retreat but Remain High as Markets Assess Renewed Middle East Risks.
Oil prices edged lower during Asian trading on Friday after a Houthi missile attack on Saudi Arabia pushed Brent crude above $106 a barrel overnight, renewing concerns over potential disruptions to Middle East oil supplies.
Crude prices nevertheless remained elevated as traders assessed heightened regional security risks alongside reports that Washington and Tehran are exploring a phased agreement aimed at reopening the Strait of Hormuz.
At 1.18pm Beijing time on September 25, Brent crude was down 0.99 per cent at $105.50 a barrel, after settling 3.4 per cent higher at $106.60 on Thursday.
Oil prices edged lower during Asian trading on Friday after a Houthi missile attack on Saudi Arabia pushed Brent crude above $106 a barrel overnight, renewing concerns over potential disruptions to Middle East oil supplies.
Crude prices nevertheless remained elevated as traders assessed heightened regional security risks alongside reports that Washington and Tehran are exploring a phased agreement aimed at reopening the Strait of Hormuz.
At 1.18pm Beijing time on September 25, Brent crude was down 0.99 per cent at $105.50 a barrel, after settling 3.4 per cent higher at $106.60 on Thursday.
US West Texas Intermediate (WTI) crude declined 1.66 per cent to $93.04 a barrel, while Murban crude, Abu Dhabi’s benchmark, was quoted 4 per cent higher at $117.60.
Oil prices briefly eased after Iran and the United States reopened diplomatic channels on the sidelines of the UN General Assembly.
Houthi strike renews supply concerns
Oil prices surged on Thursday after Saudi Arabia said it had intercepted six ballistic missiles launched by Yemen’s Iran-aligned Houthi movement towards the Taif and Yanbu areas.
Yanbu is a major Red Sea oil-export hub and the endpoint of Saudi Arabia’s East-West pipeline, which enables the kingdom to ship crude without depending on the Strait of Hormuz.
The attack sent both Brent and WTI crude as much as 5 per cent higher during the session before prices pulled back from their intraday highs.
Brent posted its highest settlement since September 15, while WTI ended a six-session losing streak during which it had declined by around 13 per cent.
Talks offer a possible path towards de-escalation
The pullback in oil prices reflects cautious optimism surrounding indirect diplomatic discussions between the United States and Iran in New York.
Sources familiar with the talks said negotiators are considering a phased approach to easing the conflict. Under the reported framework, Iran would reopen the Strait of Hormuz, while the United States would lift its economic and naval blockade on the country.
No agreement has been announced so far, and significant differences between the two sides remain unresolved.
Tehran is seeking relief from the blockade that has placed pressure on its economy, while Washington is seeking guarantees for the free movement of commercial vessels through the Strait of Hormuz. The key maritime route carried roughly one-fifth of global oil supplies before the conflict began in late February.
