Gulf stocks slide after Houthis claim Ras Tanura strike

A week of Houthi attacks on Saudi energy and civilian sites has kept oil prices high. On October 21, a drone aimed at Saudi Aramco's Shaybah oilfield was shot down, and its falling debris killed two people. Hours later, an attack on Dammam's airport left more people dead or injured. Brent crude then settled at $113.17 on Thursday, October 22, up 4% and its highest settlement since May. A Houthi claim on October 27 that it had hit the Ras Tanura refinery pushed oil up again and sent Gulf stocks lower.terminair.com

Deaths at Shaybah and Dammam

The Saudi Energy Ministry said air defenses stopped the drone on the morning of October 21 as it tried to hit a facility at Shaybah. Debris set fire to a contractor's vehicle outside the facility's perimeter. The ministry said a Filipino and a Nepali resident were killed and a Pakistani and an Indian were hurt, with no effect on operations. The field can produce 1 million barrels a day.worldoil.com+1

That evening, a Houthi attack on King Fahd International Airport in Dammam killed an Indian resident and a Saudi citizen and injured eight people, according to MEED, citing Saudi Arabia's civil aviation authority. The airport has since reopened. After the attacks, the US ordered some embassy staff and their families to leave the kingdom.meed.com+1

Brent closed almost unchanged on the day of the strikes and jumped after the close once news of the deaths spread. The next day's 4% rise was its biggest one-day gain in about two weeks. Crude exports through the Strait of Hormuz have returned to pre-war levels, but shipments of refined fuels are still limited.straitstimes.com+1

Aramco's damaged headquarters

The Houthis had already hit Aramco's head office. A missile struck the Dhahran headquarters on October 13. Saudi officials called the result a "limited fire," but three people told Reuters the damage was extensive, with fire spreading across several floors and the chief executive's office among the worst-hit areas. Regional officials told the Associated Press that the top three floors were damaged. Aramco later told staff to leave the headquarters and work remotely.apnews.com+2

Ras Tanura rattles markets

On October 27, the Houthis said a ballistic missile had hit Ras Tanura, the kingdom's largest refinery at 550,000 barrels a day. Saudi authorities did not immediately confirm the strike. A source told Bloomberg the site was hit and the fire had been contained.reuters.com+1

Gulf markets fell in early trading on Wednesday, October 28. Saudi Arabia's Tadawul All Share Index dropped as Al Rajhi Bank and Aramco declined, and stocks in Dubai and Abu Dhabi also fell, Reuters reported. Brent rose again on the renewed supply worries.cnbc.com+1

"Continued kinetic activity and the risk of renewed escalation following the midterms are keeping a floor under prices," Rebecca Babin of CIBC Private Wealth told reporters, describing a market "struggling to sustain rallies, but with limited conviction behind the selloffs as well."energiesmedia.com