Noida, Oct 23 (APAC Media): Crude Oil prices held broadly steady in early Asian trading on Friday after climbing 4% in the previous session to reach a five-month high, as Houthi attacks on Saudi Arabia, one of the world’s leading oil exporters, fuelled concerns over potential disruptions to global energy supplies.
Brent crude futures gained 1.2% to $114.14, while U.S. West Texas Intermediate (WTI) crude rose 1.86% to $100 a barrel by 11:00 a.m. IST,
Oil prices came under pressure on Friday after US President Donald Trump classified petroleum production and refining as vital to national defence, potentially paving the way for further investment in domestic fossil fuel projects.
Trump also invoked provisions of the Cold War-era Defence Production Act to enable financial incentives for activities linked to the oil and gas industry. The initiatives are intended to ease rising fuel costs in the United States as the widening Middle East conflict, involving the US, Israel and Iran, continues to disrupt global refining operations.
The administration is seeking to bring energy prices under control ahead of the November 3 US midterm elections, with inflation and the rising cost of living remaining major concerns for voters.
However, persistent geopolitical tensions continued to underpin market uncertainty, particularly amid escalating hostilities between Saudi Arabia and Yemen’s Houthi movement and Iranian attacks on vessels in the Strait of Hormuz.
The Houthis reportedly targeted several government facilities in Riyadh, a Saudi Aramco installation in Yanbu and two airports during the week. Reports of US diplomats and their families being evacuated from Riyadh further heightened concerns about the security situation in the region.
Separately, reports suggested that the US and Israel were weighing the possibility of renewed military strikes against Iran following the November 3 midterm elections, adding to uncertainty over the outlook for global energy supplies.
On the weekly front, West Texas Intermediate (WTI) crude was heading towards a decline, potentially ending a two-week run of gains. Brent crude, which settled at its highest level since May 4 on Thursday, remained on course to register a third consecutive weekly advance.
Supply concerns were further reinforced after Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday, News Agency reported. The facility is located in Saudi Arabia’s Eastern Province, close to the Gulf and Bahrain, as fighting between the kingdom and Yemen-based Houthi forces intensified.
The latest escalation comes amid renewed tensions surrounding Bab el-Mandeb, a strategically important shipping passage linking the Red Sea with the Gulf of Aden. The Iran-aligned Houthis have been engaged in a prolonged conflict with a Saudi-led coalition supporting Yemen’s internationally recognised government.
Meanwhile, Libya faced additional production disruptions after a pipeline valve connecting the Hamada and Tahara oilfields to the export terminal at Zawiya was closed. The shutdown reduced output from both fields, the head of Libya’s National Oil Corporation told Reuters on Thursday.
On the diplomatic front, Russia said on Wednesday that it was prepared to resume US-mediated negotiations with Ukraine next month. The announcement followed a meeting between Russian President Vladimir Putin and US envoy Steve Witkoff in St Petersburg.
Ukrainian President Volodymyr Zelenskiy said he hoped the negotiations, which would mark the first such discussions since February, could take place in early November.
Russia ranked as the world’s third-largest crude oil producer in 2025, behind the United States and Saudi Arabia, according to US energy data. International sanctions imposed after Moscow launched its invasion of Ukraine in 2022 have restricted Russian energy exports and contributed to volatility in global oil markets.
ENDS
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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