Houthi strikes on Saudi oil sites threaten supply as Brent hits $108

· Oil & Gas · Saudi Arabia · Yemen

Repeated Houthi attacks on Saudi oil infrastructure are raising the prospect of a major supply shock, with Brent crude at $108 a barrel and the Brent-WTI spread widening to $5. The strikes threaten Saudi production capacity at a time when tanker attacks across the Middle East have already disrupted flows. The knock-on effect has spread to gas: Asian liquefied natural gas prices jumped to their highest level since December 2022 as repeated attacks on tankers in the Middle East and Europe worsened an already tight market. The report frames the LNG move as a new war premium for gas buyers in Asia.

Why it matters：Direct strikes on the oil facilities of a top exporter, combined with attacks on tankers, could remove barrels and cargoes from the market faster than other producers can replace them.

Key points

  • Brent traded at $108 with the Brent-WTI spread at $5.
  • Asian LNG prices reached their highest since December 2022.
  • Repeated tanker attacks in the Middle East and Europe are driving the gas premium.

Sources (original reporting)

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