Crude oil prices retreated on Tuesday after rising above $106 per barrel on Monday, as traders weighed renewed attacks on Saudi Arabia against assurances from Riyadh that oil exports would continue despite mounting security risks across the Middle East.
As at the time of writing at 07:20 am (WAT), Brent crude traded at $105.50 per barrel, down 1.03%, while West Texas Intermediate (WTI) crude stood at $92.58 per barrel, declining 1.24%, according to Oilprice.com market data. Despite the pullback, both benchmarks remained elevated amid concerns over the security of regional energy infrastructure and crude oil shipments.
Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, sought to reassure the market that the kingdom could sustain its oil exports despite recent attacks on its capital, pipeline infrastructure, ports and refineries.
Speaking at the WPC Energy Congress on Monday, the minister described Riyadh as “the capital of energy security”, stressing the kingdom’s ability to maintain and reroute supplies under pressure. His remarks came as traders assessed the potential impact of further attacks by Iran and Yemen’s Houthi movement on regional oil production and transportation.
Saudi Arabia has continued efforts to increase crude exports, with ship-to-ship transfers in the Persian Gulf reportedly helping move barrels despite logistical and security challenges. However, uncertainty remains over the reliability of supply flows as attacks on energy infrastructure and shipping routes intensify.
The availability of tankers has also become a critical consideration for the market. Disruptions to shipping routes and heightened security risks can increase freight costs, delay deliveries and tighten the effective supply of crude even when producing countries maintain output.
Meanwhile, uncertainty surrounds a diesel supply deal announced by US President Donald Trump and Russian President Vladimir Putin. The proposed arrangement, involving 4.8 million tonnes of diesel, faces questions over its compatibility with sanctions against Russia. Analysts cited by Oilprice.com said the volume was unlikely to have a significant or sustained impact on retail fuel prices.
The latest decline in crude benchmarks therefore reflects a pullback after Monday’s gains rather than a resolution of the supply risks confronting the market. Traders remain focused on Saudi Arabia’s ability to sustain exports, the security of regional energy infrastructure and the potential for further disruption to oil and fuel shipments.