Oil rises as Houthi strikes on Saudi outweigh diesel deal

Oil prices climbed on Monday, October 12, after deadly Houthi attacks on Saudi Arabia's capital outweighed President Donald Trump's deal to bring more Russian diesel to market. Brent crude futures settled up \$1.93, or 1.8%, at \$106.65 a barrel, their highest close since September 15. U.S. West Texas Intermediate rose \$1.89, or 2%, to settle at \$93.74, Reuters reported.live.euronext

The rally reversed an early slide. Crude fell more than 1% in Asian trading after Trump announced on Sunday what he called an "energy ceasefire" between Russia and Ukraine. Prices moved back up after Kyiv said Russian strikes on its energy facilities had continued.euronews+1

Attacks on Riyadh

Yemen's Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's King Khalid International Airport that killed 13 people and wounded more than 300. More attacks followed on Sunday. AFP reported that several powerful explosions shook Riyadh on Monday night, and said the airport attacks had killed at least 18 people in total. Saudi Energy Minister Prince Abdulaziz bin Salman told a conference in Riyadh that "energy security can't be taken for granted".finance.yahoo+1

"The shocking Houthi missile attack on Saudi Arabia's Riyadh airport will obviously escalate the retaliation against the Houthis in Yemen," analyst Louis Navellier said. Jason Tuvey of Capital Economics warned that a wider conflict could push Brent to at least \$120 a barrel. New attacks on tankers near the Strait of Hormuz also unsettled the market.live.euronext+1

Ceasefire in doubt

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine," Trump posted on Truth Social on Sunday. Moscow did not confirm it. On Monday the Kremlin said only that "contacts are ongoing". Ukrainian President Volodymyr Zelensky said Russia had attacked six energy facilities that day and that 33 people had been wounded. "It is increasingly evident that Russia is unwilling to accept an energy ceasefire proposed by the United States," he said.mitrade+2

Diesel deal seen as small

Trump said on Friday that Russia would immediately supply more than 300,000 metric tons of diesel, about 2.25 million barrels, to the U.S. and global markets, with more to follow. ICE gasoil futures fell 2.3%. Analysts, however, said the deal would do little to lower prices. Jefferies strategist Mohit Kumar said the volumes were "unlikely to make a substantial difference". Reuters columnist Jamie McGeever estimated that the amount Trump cited for the next three months equals about 12 hours of global diesel consumption. Analyst Jim Ritterbusch said he did not expect much of a price drop before the U.S. midterm elections, which are three weeks away.marketscreener+2

Goldman Sachs The Goldman Sachs Group, Inc. ↗ 1.43% raised its December Brent forecast to \$90 from \$85. The bank estimated that geopolitical risk is adding just over \$20 a barrel to prices.live.euronext