Oil prices climbed by about two per cent on Monday as fresh attacks by Yemen’s Iran-backed Houthi movement on Saudi Arabia heightened concerns over global supply ahead of the Northern Hemisphere winter. Several powerful explosions were reported in the Saudi capital, Riyadh, on Monday night, following a series of Houthi…...
Oil prices climbed by about two per cent on Monday as fresh attacks by Yemen’s Iran-backed Houthi movement on Saudi Arabia heightened concerns over global supply ahead of the Northern Hemisphere winter.
Several powerful explosions were reported in the Saudi capital, Riyadh, on Monday night, following a series of Houthi attacks around the city’s airport in recent days that reportedly killed at least 18 people.
The attacks added to concerns about potential disruptions to global oil supplies as demand typically rises during the colder months.
Meanwhile, global stock markets recorded mixed performances as investors awaited major United States corporate earnings reports and economic data expected later in the week.
“We’re waiting for a lot of elements,” CFRA Research’s Sam Stovall said near the end of Monday’s session that saw the Dow climb and the Nasdaq retreat.
“Investors are sort of holding their breath waiting for confirmation that the market was justified in setting a new all-time high on the S&P 500,” said Stovall, adding this week’s inflation data was a particularly important source of interest.
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An unexpectedly lofty inflation reading could lift the odds for another Federal Reserve interest rate hike in October, Stovall said.
Saudi Arabia’s energy minister acknowledged that the kingdom’s infrastructure and resilience had been tested in the aftermath of the latest attacks.
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“Energy security can’t be taken for granted,” Energy Minister Prince Abdulaziz bin Salman told a high-profile conference in Riyadh. “The events of recent weeks are serious, our response must be equally serious.”
Doubts surrounding US President Donald Trump’s claim of an “energy ceasefire” between Ukraine and Russia, following his surprise announcement of a deal to buy diesel from Moscow, further unsettled investors.
“Oil remains well bid above $100 after strikes on Saudi Arabia’s Riyadh airport over the weekend, while efforts to secure a Russia-Ukraine energy truce were muddy,” said Neil Wilson, a strategist at Saxo UK.
Russia on Monday refused to say whether an agreement had been reached with Ukraine to halt attacks on energy infrastructure, a day after Trump sowed confusion with his unilateral announcement of an “energy ceasefire.”
“It is increasingly evident that Russia is unwilling to accept an energy ceasefire proposed by the United States,” Ukrainian President Volodymyr Zelensky said on social media.
“Today alone, the Russians have attacked six energy facilities in Ukraine. Thirty-three people were wounded across the country,” he added.
AFP