Houthi strikes threaten Saudi oil exports as Brent hits $105 and Middle Eastern crude soars to $120.
Houthi strikes on Saudi Arabia's oil infrastructure have alerted the oil markets to the possibility of seeing even less Middle Eastern supply than before, with potential damage to the East-West pipeline jeopardizing 3-4 million b/d of Saudi crude exports. Whilst the meeting of Gulf foreign ministers over the weekend has poured some cold water on runaway crude prices, ICE Brent at $105 per barrel (and available Middle Eastern grades such as Murban and Oman at $120 per barrel) is by no means the limit if the status quo gets protracted.
OPEC Cuts 2026 Demand Forecast Again. OPEC lowered its 2026 global oil demand growth forecast to 380,000 b/d, down by 200,000 b/d from a month ago and marking its 5th consecutive downward revision, in turn boosting its 2027 forecast as the oil group expects a 2.36 million b/d demand recovery.
Houthi Strike Threatens Saudi Arabia's Hormuz Bypass. Fire and smoke have been seen coming from Saudi Arabia's 7 million b/d East-West oil pipeline after a suspected strike by Houthi militants, with both Sentinel and NASA satellite imagery showing active fires and thermal anomalies in the area.
Australia Softens Gas Reservation Rules. Australia has watered down its proposed gas reservation policy that set a fixed 20% rate, allowing regulators to lower the reservation rate for LNG plants from 2028, a move designed to allocate as much as 200 BCf per year of additional supply to LNG exporters.