The key facts

  • Brent rose 1.14% to $114.47 per barrel — the highest in more than five months
  • European gas rose 1.37% to €91.28 per MWh — the highest since December 2022
  • The Houthis claimed attacks on the Yanbu port, an oil field and an airport in Saudi Arabia

Rising energy prices

Energy prices continued to rise on Friday amid geopolitical risks to supplies. As of 06:30 GMT, the benchmark Brent crude rose 1.14% to $114.47 per barrel — its highest level in more than five months. European natural gas prices rose 1.37% to €91.28 ($102.40) per megawatt-hour — the highest since December 2022.

Middle East escalation

Oil was rising amid an escalation of attacks on Saudi targets and reports of possible new US strikes on Iran, which heightened concerns over energy supplies from the Middle East. Yemen's Houthi movement claimed responsibility for recent attacks on the Red Sea port of Yanbu in Saudi Arabia, as well as for strikes on an oil field and an airport that caused casualties. The commentary also cited reports that the US and Israel had developed plans for new attacks after the US midterm elections in November, with Iranian energy infrastructure possibly among the targets.

Exports and the gas market

Despite the escalating tensions in the region and threats to shipping through the Strait of Hormuz, oil exports from Persian Gulf countries have recovered to almost pre-war levels. European gas prices, in turn, continued to rise due to supply disruptions from the Persian Gulf region, keeping the global LNG market strained ahead of winter. According to the platform, Middle East LNG supplies remained roughly 80% below the level of a year earlier, increasing the likelihood of intensified competition between European and Asian buyers for available cargoes.

Storage and winter outlook

European gas storage facilities were 74.62% full as of October 22 — the lowest level for this time of year since record-keeping began in 2009. Low inventories leave the region with a limited buffer ahead of winter, increasing vulnerability to further supply disruptions and rising heating demand. Over the current week, European gas prices gained about 4% and, according to the publication, are heading for a fourth consecutive weekly rise.