ICE Brent moved back above $110/bbl after further attacks on Saudi Arabia, adding to supply-risk concerns and keeping crude prices well supported. Drones struck the Shaybah oilfield and Dammam’s international airport, while an oil processing plant was also targeted. Oil flows from the Persian Gulf were described as holding up, with Kuwait exporting as much crude as before the war while producing more than 2m b/d; however, shipping refined products was flagged as more problematic.
US Inventories and Strategic Reserves
US inventory figures added to the risk premium. EIA data showed crude oil inventories fell by 3.06m barrels over the past week, and Strategic Petroleum Reserves declined by a further 300k barrels, with the numbers still shaped by hurricane disruption in the US Gulf of Mexico. Against that backdrop, US oil production was estimated to have dropped 410k b/d week-on-week, reinforcing uncertainty around near-term supply conditions.
