Crude Oil Prices Fall On 26 October Despite Houthi Attacks On Saudi Arabia, With Brent Trading At $115 A Barrel

Oil prices fell on 26 October, with Brent crude futures down 1.72% to $115 per barrel and US crude futures declining 2% to $101.48 per barrel. Both had climbed last week as Houthi attacks on Saudi Arabia raised concerns about possible supply disruptions. The decline came despite fresh attacks on Saudi Arabia, which have kept traders concerned about possible supply shortages.

The fall followed a strong week for both benchmarks. Brent gained 6%, while US West Texas Intermediate (WTI) rose 2.3%. Both benchmarks had settled nearly $3 higher on Friday following Houthi attacks in Saudi Arabia that heightened concerns over energy supplies.

Why Did Crude Oil Prices Fall?

The latest price drop does not mean the supply concerns have gone away. The Houthis claimed to have targeted a Saudi airport and oil facilities on Saturday. Saudi authorities said they intercepted more missiles and drones the following day.

Saudi Arabia partially resumed operations at its main airport on Sunday, following damage caused by earlier attacks. However, the Houthis have threatened further strikes. Saudi Aramco had also ordered the evacuation of its headquarters in Dhahran last week, Reuters reported.

Elsewhere in the region, an oil spill was detected off the coast of Umm Al Quwain in the United Arab Emirates. Authorities have yet to identify the vessel involved or establish what caused the spill.

Shipping routes are another concern. The Bab el-Mandeb Strait, which links the Red Sea with the Gulf of Aden, is an important passage for international trade. Continued fighting around the area could complicate the movement of oil shipments.

Saudi Arabia, meanwhile, plans to start storing crude oil in Singapore in the second half of 2027. The move is intended to strengthen its regional supply chain. The US has also authorised the release of 400,000 barrels from its Strategic Petroleum Reserve to address a supply disruption at a Louisiana refinery.

Will Crude Oil Prices Rise Today?

Whether crude oil prices rise again will depend largely on how the conflict develops. According to a brokerage house, prices could reach $120 a barrel if attacks on vessels in the Middle East intensify.

The opposite could happen if exports return to normal, with prices potentially falling towards $80 a barrel. For now, traders will be watching shipping activity and further developments in Saudi Arabia for signs of where the market heads next.

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