Oil prices drop despite Houthi attacks on Saudi Aramco

Global oil prices fell on Wednesday despite renewed geopolitical tensions in the Middle East. Brent crude for November fell 2.69% to $105.83 per barrel, while West Texas Intermediate (WTI) for October dropped 3.21% to $102.43 per barrel.

The decline occurred even as Houthi rebels in Yemen claimed responsibility for attacks against Saudi Aramco facilities and an airbase in Khamis Mushait. Additionally, Saudi Aramco is working to restore flow to a strategic pipeline that was recently disrupted by drone attacks. U.S. Energy Secretary Chris Wright noted that Riyadh is acting quickly to export more oil through the Strait of Hormuz to mitigate the impact of the pipeline closure, describing the interruption as “temporal.”

Market analysts suggest that expectations following a meeting between U.S. authorities and Houthi representatives in Oman weighed more heavily on prices than the immediate attacks. Meanwhile, U.S. oil inventories saw a decrease of 640,000 barrels for the week ending September 11.