Oil prices rose about two percent on Monday as fresh attacks on Saudi Arabia and tankers near the Strait of Hormuz renewed concerns over Middle East supplies, overshadowing additional Russian diesel shipments and a reported agreement between Russia and Ukraine to halt attacks on energy infrastructure.
Brent crude rose $2.24, or 2.14 percent, to $107 per barrel, while US West Texas Intermediate gained $1.96, or 2.13 percent, to $93.81, according to Oilprice data.
The gains followed a weekend of attacks on Saudi Arabia, including a Houthi strike on Riyadh’s international airport on Saturday that reportedly killed 13 people and wounded more than 300. Further attacks were reported on Sunday, while two tankers were struck near Oman and in the Strait of Hormuz.
The incidents threaten to reverse the recovery in Gulf oil exports, which reached 81 percent of prewar levels in September. Crude and condensate shipments recovered to 91 percent, but refined-product exports remained at 60 percent, highlighting the uneven pace of the supply recovery.
Goldman Sachs raised its December Brent price forecast to $90 per barrel from $85, estimating that geopolitical risks were adding slightly more than $20 per barrel to oil prices.
The price increase comes amid weakening demand expectations. Haitham Al Ghais, OPEC Secretary General, said on Monday that the group expects global oil demand to grow by 400,000 barrels per day in 2026, down from its initial forecast of 1.4 million bpd at the beginning of the year.
The International Energy Agency expects a sharper contraction, forecasting a 2.5 million bpd decline in global oil consumption in 2026, followed by a 2.6 million bpd rebound in 2027.
Additional Russian diesel supplies could ease pressure on fuel markets. US President Donald Trump said Russia would supply more than 300,000 metric tonnes of diesel to US and global markets, with further volumes expected. Moscow has also partially relaxed restrictions on diesel exports, allowing another 500,000 tonnes onto international markets.
Trump also announced that Russia and Ukraine had agreed to stop attacking each other’s energy infrastructure, although Ukrainian President Volodymyr Zelensky accused Moscow of violating the agreement on Monday.
Meanwhile, Shell, Chevron and BP were preparing to resume offshore production in the Gulf of Mexico after Hurricane Isaias disrupted operations over the weekend.
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