Crude rose over the weekend, hovering at close to $120 per barrel, before easing a bit after Yemen’s Houthi militia leader announced a three-day halt to hostilities.
Brent for May settlement lost 2.8 percent to $117.28 a barrel on the ICE Futures Europe exchange after gaining 1.4 percent on following the Aramco attack.
The unilateral truce in Yemen was announced by Mahdi Al-Mashat, president of the Houthi ruling political council, Bloomberg reported.
The truce follows an escalation of attacks on Saudi Arabia over the past week.
Bomb-laden drones have targeted Saudi Arabia and the UAE through January and February, indicating an escalation in regional violence at a time when energy prices are surging due to the Russia-Ukraine conflict.
The Houthi militia forces have targeted key infrastructure in Saudi Arabia through a series of attacks on Saudi Aramco facilities, including an attack on an oil storage site in Jeddah, where the kingdom hosted the Formula 1 Grand Prix this weekend.
In response, Saudi coalition forces launched airstrikes against sites in Yemen, targeting sites such as the Ras Eissa port and electricity and fuel installations in Yemen’s Hodiedah province, as well as military sites in the capital, Sanaa.
The state-run Saudi Press Agency reported that the coalition targeted drones that were being prepared at the ports of Hodiedah and Saleef. It also targeted four boats being readied for assault at Saleef, thwarting “an imminent attack on oil tankers.”
Oil is still poised for a fourth monthly gain after Russia’s invasion of Ukraine roiled markets, Bloomberg reported.
Most buyers are shunning the OPEC+ producer’s crude as they try and navigate financial sanctions and reputational risks, while Germany is planning to wean itself off almost all Russian fossil fuels within two years.
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