Oil Prices Slip as Saudi Export Recovery Offsets Houthi Attacks

Oil prices declined on Monday as investors focused on Saudi Arabia's efforts to restore crude shipments despite continued attacks by Yemen's Houthi movement, which have heightened tensions across the Middle East.

Brent crude futures fell 81 cents, or 0.78%, to $103.06 a barrel by 0031 GMT, after settling 0.91% lower on Friday. US West Texas Intermediate crude stood at $99.41 a barrel, down 89 cents, or 0.89%, following a 1.58% loss in the previous session.

The Houthis, backed by Iran, said they struck "sensitive" sites in Riyadh with missiles and drones on Saturday, along with an Aramco facility in the Red Sea city of Yanbu, a key oil export hub. The attacks on Saudi Aramco's East-West pipeline have led the state energy firm to increase exports through the Strait of Hormuz this month and next, after halting some shipments via Yanbu.

That shift has helped Saudi exports recover to just over 4 million barrels per day (bpd) so far in September, up from 2.4 million bpd in August — the lowest since at least 2013, according to provisional data from analytics firm Kpler.

"Middle East oil flows remain surprisingly strong despite the disruption to Saudi Arabia's East-West pipeline," JPMorgan analysts said in a September 18 note, adding that total oil flows averaged 17.1 million bpd over the past 10 days, just 6.1 million bpd below the 2025 average. "The most notable pivot has come from Saudi Arabia," they said, noting satellite data showed Saudi oil moving through the Strait of Hormuz averaged 2.9 million bpd over the past six days, up from 700,000 bpd in August.

Separately, China has asked Iran to help rein in the Houthis following an appeal from Saudi Arabia after the attacks, according to three Iranian sources familiar with the matter. Iran and the US exchanged new threats on Sunday amid a stalemate, though President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the United Nations General Assembly in New York this week. Iran has conveyed its conditions to mediators for re-engaging in negotiations aimed at ending the war with the US, Al Jazeera cited Iran's security chief, Mohsen Rezaei, as saying in an interview on Saturday.