The key facts
- Brent rose 2.4% to $111.40 per barrel, WTI rose 2.22% to $99.30 after the attack on the Shaybah field
- Two people were killed in the attack; the US is evacuating some staff of diplomatic missions in Saudi Arabia
- Saudi oil exports rose 7.9% in August — the highest since March, which may cap price growth
Shaybah attack lifted quotes
Oil prices rose more than 2% on Thursday after a drone attack on Saudi Aramco's Shaybah oil field, which heightened concerns about further disruptions in energy supplies. As of 06:00 GMT, the benchmark Brent was trading at $111.40 per barrel (+2.4%), while American WTI was at $99.30 (+2.22%). Two people were killed in the attack. The incident revived concerns about the security of energy infrastructure in the Middle East and helped oil recover earlier losses.
Escalation of tensions in the region
The US ordered some staff members and their family members to leave diplomatic missions in Saudi Arabia, which heightened concerns about regional tensions. In addition, large-scale Ukrainian drone attacks on Russian oil infrastructure this week further complicated the supply outlook. The attacks came against the backdrop of Moscow's drive to expand diesel fuel exports under an agreement between US President Donald Trump and Russian President Vladimir Putin.
Factors limiting price growth
Further price growth may be restrained by an increase in oil shipments from the Middle East: export flows are approaching pre-war levels. Saudi Arabia increased crude oil exports by 7.9% in August to the highest level since March, and Russia was expected to deliver the first batch of diesel fuel to the US on Thursday.
