Crude Oil Prices Decline on Monday Following Houthi Attacks in Saudi Arabia

Crude oil futures traded lower on Monday morning following Houthi attacks on Saudi Arabian oil facilities and an airport over the weekend. Meanwhile, geopolitical tensions remain in focus as discussions surrounding potential actions involving Iran continue.

NEW DELHI — Brent crude oil futures traded lower on Monday morning, moving down after settling above $116 a barrel on Friday, despite recent attacks on Saudi Arabian infrastructure by the Houthis.

At 10:03 am on Monday, December Brent oil futures were recorded at $114.48, marking a decline of 1.92 per cent. Simultaneously, December crude oil futures on West Texas Intermediate (WTI) stood at $101.01, down by 2.19 per cent.

Domestic commodity markets reflected similar downward trends during the initial hours of trading. On the Multi Commodity Exchange (MCX), November crude oil futures traded at ₹9,619 compared to the previous close of ₹9,800, representing a decrease of 1.85 per cent. December futures on the exchange traded at ₹9,488 against the previous close of ₹9,643, down by 1.61 per cent.

The market movements follow a weekend of security incidents in West Asia. On Saturday, the Houthis claimed responsibility for attacks targeting an airport and oil facilities in Saudi Arabia. Authorities in Saudi Arabia stated that they successfully intercepted incoming missiles and drones. These ongoing incidents have heightened market concerns regarding potential supply disruptions from the region.

Adding to geopolitical uncertainties, US President Donald Trump stated in a television interview on Sunday that it was approaching a decision point regarding whether to pursue a deal with Iran or take alternative measures, raising market attention toward potential escalation in West Asia.

In other commodity trading on the MCX during Monday's initial hours, November natural gas futures traded at ₹286.20, down 2.22 per cent from the previous close of ₹292.70.

On the National Commodities and Derivatives Exchange (NCDEX), December turmeric contracts saw a marginal increase, trading at ₹26,760 compared to the previous close of ₹26,616, up by 0.54 per cent. Conversely, November guargum futures on the NCDEX traded lower at ₹15,749, down 1.51 per cent from the previous close of ₹15,991.

"Fluctuations in crude oil prices directly impact operational costs across various industries, including logistics, manufacturing, and supply chain enterprises within the broader business ecosystem. When geopolitical events cause volatility in international energy markets, businesses must closely monitor their input costs and maintain agile financial planning to manage potential cost pressures effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes