Oct 23 - Oil prices were largely unchanged in early Asian trade on Friday after a sharp rise in the previous session, as traders weighed persistent supply concerns stemming from regional hostilities and a pipeline disruption in Libya.
Market moves and levels
Brent crude futures fell 21 cents, or 0.2%, to $112.96 a barrel as of 0030 GMT. US West Texas Intermediate crude was down 27 cents, or 0.3%, at $98.12. The previous session had seen oil climb roughly 4% to reach a five-month high.
On a weekly basis, WTI was poised to end two weeks of gains and finish lower, while Brent - which settled at its highest level since May 4 in the prior session - was positioned to close higher for a third consecutive week.
Regional supply disruptions
Energy market participants remain focused on developments in the Middle East after Houthi attacks on Saudi Arabia contributed to concern about additional disruptions to crude flows. On Thursday, Saudi Aramco ordered the evacuation of its headquarters in Dhahran on the Gulf near Bahrain as fighting intensified between Saudi forces and the Yemen-based Houthis.
The clashes involve the Iran-aligned Houthis and a Saudi-led coalition that supports Yemen’s internationally recognised government. The conflict has escalated since the Houthis pushed towards Bab el-Mandeb, a key shipping chokepoint at the mouth of the Red Sea, raising fears about safe passage for tankers and the potential for broader interruptions to supply.
Meanwhile, in Libya, a pipeline valve carrying crude from the Hamada and Tahara oilfields to Zawiya port has been shut. The head of the National Oil Corporation said on Thursday that the closure has led to a reduction in output at both fields, cutting into Libyan production.
Diplomatic developments and supply context
Separately, Russia said on Wednesday it was ready to resume US-mediated talks with Ukraine next month after President Vladimir Putin hosted US envoy Steve Witkoff for talks in St Petersburg. Ukrainian President Volodymyr Zelenskiy said he hoped the negotiations, which would be the first since February, would take place early in November.
Russia was the world’s third-biggest crude oil producer behind the US and Saudi Arabia in 2025, US energy data showed. Sanctions aimed at keeping Russian energy out of global markets after Russia’s invasion of Ukraine in 2022 have contributed to higher oil prices.
Against this mix of regional disruptions and geopolitical pressure, oil market participants continue to assess both near-term physical supply risks and the broader policy environment that affects available volumes and pricing.
Summary
Oil prices held near recent highs on Oct 23 as traders monitored disruptions tied to Houthi attacks on Saudi facilities and a Libyan pipeline shutdown, while diplomatic signals from Russia and Ukraine added to the market backdrop. Brent and WTI were modestly lower in early Asian trade after a rally in the previous session.
- Key points
- Brent was down 21 cents at $112.96 a barrel; WTI was down 27 cents at $98.12 as of 0030 GMT.
- Saudi Aramco ordered the evacuation of its Dhahran headquarters amid intensified fighting with Yemen-based Houthis.
- A valve closure on a Libyan pipeline servicing Hamada and Tahara to Zawiya port has reduced output at both fields.
- Risks and uncertainties
- Continued Houthi actions and escalation around Bab el-Mandeb could threaten tanker routes and hamper crude shipments - impacting the shipping and energy sectors.
- Further disruptions to Libyan production from the pipeline shutdown could tighten regional supply - affecting crude traders and refiners dependent on Mediterranean supplies.
- Ongoing sanctions and shifts in diplomatic negotiations involving Russia and Ukraine could influence global supply availability and price dynamics - relevant to producers, consumers, and geopolitically exposed markets.