Oil Prices Hold Near Five-Month High Amid Saudi Supply Concerns

Oil prices held largely steady in early Asian trading on Friday after rising 4% in the previous session to a five-month high. Concerns over potential supply disruptions following Houthi attacks on Saudi Arabia, the world’s leading crude oil exporter, continued to support prices.

Brent crude futures fell 21 cents, or 0.2%, to $112.96 a barrel. US West Texas Intermediate (WTI) crude declined 27 cents, or 0.3%, to $98.12 a barrel.

Despite the latest gains, WTI was on track to end a two-week winning streak with a weekly decline. Brent, which settled at its highest level since May 4 on Thursday, was heading for a third consecutive weekly gain.

Saudi Security Concerns Raise Supply Risks

Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia and Yemen-based Houthi forces, Reuters reported. Dhahran lies on the Gulf near Bahrain.

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The escalation has raised concerns about potential disruptions to regional oil production and shipments. The Houthis and a Saudi-led coalition supporting Yemen’s internationally recognised government have clashed as Houthi forces advanced towards Bab el-Mandeb, a strategic shipping chokepoint at the entrance to the Red Sea.

Any disruption around this route could affect maritime traffic and increase pressure on global energy markets.

Libya Faces Further Oil Production Cuts

Supply concerns have also emerged in Libya. The head of the country’s National Oil Corporation told Reuters on Thursday that a pipeline valve serving the Hamada and Tahara oilfields and the port of Zawiya had been shut.

The closure has reduced production at both oilfields, adding another potential constraint to global supplies.

Russia-Ukraine Talks Remain in Focus

Geopolitical developments involving Russia and Ukraine have also influenced market sentiment. Russia said on Wednesday it was prepared to resume US-mediated talks with Ukraine next month after President Vladimir Putin met US envoy Steve Witkoff in St Petersburg.

Ukrainian President Volodymyr Zelenskiy expressed hope that negotiations would take place in early November. If held, the talks would be the first since February.

Russia ranked as the world’s third-largest crude oil producer in 2025, behind the United States and Saudi Arabia, according to US energy data. Sanctions imposed after Russia’s 2022 invasion of Ukraine have also reshaped global energy trade and contributed to supply uncertainty.

With tensions affecting several major oil-producing regions, traders remain focused on the risk of further disruptions and their potential impact on crude prices.