OCBC’s Christopher Wong observes that weekend attacks targeting Saudi Arabia have revived supply and geopolitical concerns in Oil markets. While Saudi authorities reported no new infrastructure damage, Wong notes that existing pipeline issues and disrupted Yanbu loadings underscore ongoing disruption risks, suggesting near-term downside in Brent and WTI may be limited unless Saudi flows normalise and attacks subside.

Geopolitical risks remain despite renewed downside in Oil

"Oil could see some renewed support after fresh attacks on Saudi Arabia over the weekend. Houthis claimed missile and drone strikes on Riyadh and an Aramco facility at Yanbu, though Saudi authorities said the attacks on Yanbu and several other locations were thwarted, with no fresh damage to oil infrastructure reported."

"This comes with the East-West pipeline already damaged and Yanbu loadings disrupted. Brent had eased to around US$105/bbl on Friday as supply concerns moderated, but the weekend developments are a reminder that disruption risks remain."

"For now, further downside in oil may be limited unless Saudi flows normalise and attacks on energy infrastructure subside."

"Weekend attacks on Saudi Arabia keep supply/geopolitical risks alive, potentially limiting near-term downside in oil prices."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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