Oil holds near $114 amid Saudi supply concerns

October 23, 2026 (MLN): Oil prices remained largely stable in early Asian trading on Friday after surging 4% in the previous session to reach a five-month high, as escalating hostilities involving Saudi Arabia and Yemen’s Houthis heightened concerns over potential disruptions to global energy supplies.

Currently, Brent crude futures is up, 2.17%, at $113.97 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $1.02, or 1.03%, to $100.36 per barrel by [10:00 am] PST.

On a weekly basis, West Texas Intermediate (WTI) crude was heading for a decline, potentially ending a two-week winning streak. Brent crude, which settled at its highest level since May 4 on Thursday, was on course to record its third consecutive weekly gain, according to CNBC.

Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday amid intensifying hostilities between Saudi Arabia, the world’s largest crude exporter, and Yemen-based Houthi forces, Reuters reported.

The conflict has intensified as the Iran-aligned Houthis advance towards Bab el-Mandeb, a strategically important shipping chokepoint at the entrance to the Red Sea. Fighting has continued between the group and a Saudi-led coalition supporting Yemen’s internationally recognised government.

Supply concerns have also emerged in Libya, where a pipeline valve connecting the Hamada and Tahara oilfields to Zawiya port has been shut. The development has reduced output from both fields, according to the head of Libya’s National Oil Corporation, as reported by Reuters on Thursday.

Meanwhile, Russia said on Wednesday it was prepared to resume US-mediated negotiations with Ukraine next month, following talks between Russian President Vladimir Putin and US envoy Steve Witkoff in St Petersburg.

Ukrainian President Volodymyr Zelenskiy expressed hope that the negotiations, which would be the first since February, could take place in early November.

Russia ranked as the world’s third-largest crude oil producer in 2025, behind the United States and Saudi Arabia, according to US energy data. Sanctions imposed following Russia’s 2022 invasion of Ukraine have restricted the availability of Russian energy in global markets, contributing to upward pressure on oil prices.

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