Crude Oil Prices Rise Following Escalated Houthi Attacks on Saudi Arabia

Crude oil futures traded higher on Thursday morning following an escalation of attacks by the Houthis on Saudi Arabia. December Brent oil futures rose by 1.85 per cent to $110.83, while West Texas Intermediate (WTI) December crude oil futures increased by 1.52 per cent to $98.63 at 10.02 am.

On the Multi Commodity Exchange (MCX), November crude oil futures traded at ₹9340 during the initial hour of trading, up 1.43 per cent from the previous close of ₹9208. December futures on the exchange traded at ₹9203, marking a 1.50 per cent increase from the previous close of ₹9067.

According to ING Think’s Commodities Strategy Head Warren Patterson and Commodities Strategist Ewa Manthey, oil prices remain well bid, with ICE Brent returning above $110 a barrel following deadly attacks in Saudi Arabia. Drones struck the Shaybah oilfield, Dammam’s international airport, and targeted an oil processing plant. While Saudi Arabia’s energy ministry stated that production has not been impacted, the security escalation prompted the US State Department to order non-emergency government personnel to leave the country, raising market concerns over ongoing West Asian tensions.

Data from the US Energy Information Administration (EIA) petroleum status report for the week ending October 16 showed a decline in domestic commercial crude oil inventories. Inventories decreased by 3.1 million barrels to 412.5 million barrels, leaving them 3 per cent below the five-year average.

Gasoline inventories in the US decreased by 3 million barrels and remain 5 per cent below the five-year average. Conversely, distillate inventories increased by 1.7 million barrels, standing at 9 per cent below the five-year average. Total products supplied in the US averaged 21.1 million barrels a day over the past four weeks, reflecting a 3.2 per cent increase year over year.

In other commodity trading on Thursday morning, October copper futures on the MCX traded down 1.65 per cent at ₹1367.50 against the previous close of ₹1390.40. On the National Commodities and Derivatives Exchange (NCDEX), December turmeric farmer polished contracts traded up 1.96 per cent at ₹26050, and November guargum futures traded up 0.77 per cent at ₹15580.

"Geopolitical tensions in major oil-producing regions continue to introduce immediate volatility into global energy markets. For businesses and startups reliant on logistics, manufacturing, and transport, rising crude prices directly translate to higher operational overheads. When energy costs fluctuate sharply alongside shifting inventory levels in the US, companies must maintain agile financial planning and robust supply chain strategies to absorb potential cost pressures without destabilizing their core operations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes