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Reuters reported that oil prices fell on Monday after surging to near six-month highs late last week although ongoing attacks on Saudi Arabia kept supply concerns in focus. US crude futures were down $1.60 or 1.55 percent at $101.67 per barrel by 0018 GMT while Brent crude futures were down $1.56 or 1.34 percent at $115.16. The contracts had settled nearly $3 higher on Friday with Brent finishing the week up 6 percent and WTI ending 2.3 percent higher.
The news agency added that attacks continued over the weekend with Houthis saying they had attacked the Saudi airport and oil facilities on Saturday. Saudi Arabia said on Sunday it had intercepted more missiles and drones. The top oil exporter restarted partial operations at its main airport on Sunday after damage in a previous round of Houthi attacks even as the militant group vowed to keep targeting the facility.
According to a Reuters dispatch Saudi Arabia will start storing crude oil in Singapore from the second half of 2027 to shore up the resilience of its supply chain in the region. Energy ministers from both countries said the arrangement would begin then. The US Department of Energy authorized an emergency exchange of up to 400,000 barrels of crude from the Strategic Petroleum Reserve to address a supply disruption at a Louisiana refinery.
A separate Reuters report indicated that US President Donald Trump ruled out an imminent attack on Iran which appeared to ease some geopolitical premium in oil markets on Monday. Houthi missile and drone attacks targeted Saudi Arabia on Monday including claimed strikes on pumping stations. General Turki Al-Malki spokesman for the Saudi-led Coalition to Restore Legitimacy in Yemen said a ballistic missile fired towards Riyadh had been intercepted and destroyed.
The US Energy Information Administration figures released the previous week showed domestic crude stocks fell by 3.06 million barrels to 412.5 million barrels exceeding expectations for a more modest draw. This inventory tightening had supported prices in the lead-up to the weekend surge. Distillate stockpiles increased by 1.68 million barrels during the period.
Michael Alfaro chief investment officer at Gallo Partners told CNBC that geopolitical uncertainty had already added roughly $20 a barrel to oil prices. The analyst made the comment amid the recent volatility. Brent crude has risen more than 12 percent over the past month according to market data.
