Oil prices rise amid escalating Houthi attacks in Saudi Arabia
In short
Oil prices rose more than 2%, The Wall Street Journal reported, amid escalating Houthi attacks in Saudi Arabia, a tanker strike in the Persian Gulf and growing U.S. offshore production shut-ins as Hurricane Isaias approached the coast. The New York Times reported that attacks on ships around the Strait of Hormuz have continued as a war between Saudi Arabia and the Houthi militia intensified.
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Oil prices rose more than 2%, The Wall Street Journal reported, as Houthi attacks in Saudi Arabia escalated, a tanker was struck in the Persian Gulf and U.S. offshore production shut-ins grew with Hurricane Isaias approaching the coast. The New York Times reported that oil prices jumped on an outburst of violence in the Middle East, saying attacks on ships around the Strait of Hormuz have continued as a war between Saudi Arabia and the Houthi militia intensified. [ 2 , 3 ]
CNBC's headline says oil rose as concerns over Houthi attacks on Saudi Arabia eclipsed a supply recovery, but the text of its article reports that crude prices fell after International Energy Agency member states agreed to prioritise the release of diesel stocks. According to that text, Brent crude lost 38 cents to close at $100.20 a barrel and West Texas Intermediate fell $1.16 to settle at $88.28. [ 1 ]
IEA director Fatih Birol said members have deployed about 325 million barrels of oil under the March emergency action plan to address the supply disruption triggered by the Iran war, leaving about 100 million barrels not yet released under that plan. He said member states still hold emergency stocks equivalent to 1.1 billion barrels, including more than 200 million barrels of diesel, and that the IEA is ready to release more if and when required. CNBC reported that G7 nations had agreed to release diesel stocks under pressure from the Trump administration, but that it is still unclear how much diesel will be deployed. [ 1 ]
Why it matters
Business outlets tie the price rise to attacks in Saudi Arabia, strikes on shipping in the Gulf region and U.S. offshore production shut-ins ahead of Hurricane Isaias. CNBC reported that International Energy Agency members have released about 325 million barrels of oil under a March emergency plan and say they are ready to release more stocks if and when required.
Key facts
- Oil prices rose more than 2%, The Wall Street Journal reported. [ 2 ]
- The Wall Street Journal linked the gains to escalating Houthi attacks in Saudi Arabia, a tanker strike in the Persian Gulf and growing U.S. offshore production shut-ins as Hurricane Isaias approached the coast. [ 2 ]
- The New York Times reported that attacks on ships around the Strait of Hormuz have continued as a war between Saudi Arabia and the Houthi militia intensified. [ 3 ]
- CNBC's article text reports that Brent crude lost 38 cents to close at $100.20 a barrel and West Texas Intermediate fell $1.16 to settle at $88.28 after IEA member states agreed to prioritise the release of diesel stocks. [ 1 ]
- IEA director Fatih Birol said members have deployed about 325 million barrels under the March emergency action plan, leaving about 100 million barrels not yet released under that plan. [ 1 ]
- Birol said member states still hold emergency stocks equivalent to 1.1 billion barrels, including more than 200 million barrels of diesel. [ 1 ]
Confirmed by several sources
Still unclear
- Whether oil prices rose or fell in the session CNBC covered. CNBC's headline says oil rose on concerns over Houthi attacks on Saudi Arabia, but its article text reports that crude prices fell after the IEA agreed to prioritise diesel stock releases.
- How much diesel will be deployed under the G7 agreement. CNBC reported that it is still unclear how much diesel will be released.
- The scale of U.S. offshore production shut-ins ahead of Hurricane Isaias. Only The Wall Street Journal mentions the shut-ins, and its summary gives no figures.
What local media are saying
Timeline, local time
- 6 October: CNBC publishes its report headlined on oil rising over concerns about Houthi attacks on Saudi Arabia; its text covers the IEA's agreement to prioritise diesel stock releases. [ 1 ]
- 8 October: The Wall Street Journal reports oil prices rose more than 2% amid Houthi attacks, a Persian Gulf tanker strike and U.S. Gulf shut-ins. [ 2 ]
- 8 October: The New York Times reports oil prices jumped on an outburst of violence in the Middle East. [ 3 ]