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Oil prices slip as Saudi exports show signs of recovery
Oil prices went down a little on Monday.
Investors were watching whether Saudi Arabia could restart more oil shipments.
Saudi exports had fallen sharply in August but have risen again in September.
Attacks claimed by Yemen’s Houthis disrupted some Saudi oil routes.
Saudi Arabia responded by sending more oil through the Strait of Hormuz.
Analysts said oil shipments from the Middle East were still fairly strong.
China asked Iran to help stop the Houthi attacks.
The United States and Iran were still arguing, although Donald Trump said he might meet Iran’s president.
Brent crude fell 81 cents to $103.06 per barrel early Monday, while WTI dropped 89 cents to $99.41.
Saudi oil exports recovered to just over 4 million barrels per day in September, up from 2.4 million in August.
Houthi militants claimed missile and drone attacks on sites in Riyadh and a Saudi Aramco facility in Yanbu.
Saudi Arabia increased shipments through the Strait of Hormuz after halting some Yanbu exports because of pipeline disruptions.
China has asked Iran to help restrain the Houthis as tensions between Iran and the United States remain unresolved.
- Who
- Saudi Arabia, the Houthis, Iran, the United States, China, and oil-market investors were involved in the developments.
- What
- Oil prices declined as investors assessed recovering Saudi exports amid attacks and wider Middle East tensions.
- Where
- The reported attacks targeted Riyadh and Yanbu in Saudi Arabia; oil shipments were rerouted through the Strait of Hormuz.
- When
- The price moves occurred early Monday, September 21; the attacks were reported on Saturday.
- Why
- Prices slipped as Saudi exports recovered, while geopolitical risks remained because of Houthi attacks and the US-Iran stalemate.
Key facts
- Brent price
- $103.06 per barrel, down 81 cents, or 0.78%.
- WTI price
- $99.41 per barrel, down 89 cents, or 0.89%.
- Saudi exports in September
- Just over 4 million barrels per day, according to provisional Kpler data.
- Saudi exports in August
- 2.4 million barrels per day, the lowest level since at least 2013.
- Saudi oil through Strait of Hormuz
- An average of 2.9 million barrels per day over the previous six days, up from 700,000 barrels per day in August.
- Houthi targets claimed
- Sensitive sites in Riyadh and a Saudi Aramco facility in Yanbu.
- US-Iran relations
- The countries exchanged new threats amid a stalemate, while Donald Trump said he was open to meeting Iran’s president.
Quotes
JPMorgan analysts
Analysts cited in a September 18 note about regional oil flows
“Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline,”
livemint.com
“The most notable pivot has come from Saudi Arabia,”
livemint.com
Sources
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