Brent crude nears $114 as Houthi attacks raise Saudi oil supply fears

Brent crude neared $114 a barrel on Friday as threats from Yemen’s Houthi rebels against Saudi Arabia increased concerns over another disruption to world oil supplies.

Brent crude futures climbed 58 cents to $113.75 a barrel at 0439 GMT and US West Texas Intermediate crude jumped 66 cents to $100.13, Reuters reported. Brent settled on Thursday at its highest level since 4 May.

The hike in price came after rising tensions between the world’s top crude exporter Saudi Arabia and Iran-backed Houthis. Reuters reported Saudi Aramco is instructing employees to vacate its headquarters in Dhahran on Thursday amid the rising tensions.

The strikes have sparked fears that more hits to energy sites or shipping lanes could limit oil supplies and raise prices.

The strategically located Strait of Hormuz and the Bab el-Mandeb Strait are popular shipping paths for the world’s energy trade, meaning the expanding regional conflict threatens oil markets.

Brent was heading for a third weekly gain in a row, with US crude on course for a second weekly fall.

Traders said that the extent and duration of any such supply disruption would affect the extent of any sustained rally in oil prices, while geopolitical risk continued to play a part in trading.