Brent crude settled down about 1% near $106 on Tuesday as hopes for a US-Russia diesel deal offset the Saudi-Houthi conflict. Loud booms were reported near Aramco's Dhahran headquarters late in the session, and Aramco did not comment.
Oil settled mixed on Tuesday. Brent futures fell nearly $1, or circa 1%, to around $106 a barrel, after Monday's close at the highest level since mid-September. West Texas Intermediate (WTI) rose about 40 cents to around $94, its strongest close since late September.
Booms near Aramco's headquarters
Late on Tuesday, six sources cited by Reuters said loud booms were heard near Saudi Aramco's headquarters in Dhahran. One source said the building had been struck, though it was unclear whether by a direct hit or falling debris. Four sources said an evacuation order was issued.
The Financial Times reported that one person with direct knowledge said the Dhahran headquarters had been attacked and was on fire, while the extent of the damage was not immediately clear. The Saudi-led coalition said it had intercepted ballistic missiles launched on Haradh and Dhahran, and that fragments from the Dhahran interception fell into a residential area.
The incident followed coalition strikes on a Yemen Petroleum Company fuel depot on the outskirts of Sanaa, after which the Houthis threatened Saudi oil facilities. The group has spent a week firing missiles and drones at Saudi targets, including Riyadh's international airport.
Diesel deal and supply signals
On the other side, hopes that a US-Russia deal on diesel exports could release more supply from Moscow held back prices. The Kremlin said it saw no direct link between the deal and its position on Ukraine peace talks. Even so, US diesel futures traded up circa 5%, a sign the market remains unconvinced the deal will ease tight product supply.
OPEC said OPEC+ output rose sharply in September, with Saudi Arabia lifting crude production to around 8.4 million barrels per day from around 6.2 million in August. It also trimmed its 2026 demand growth forecast for a sixth consecutive month.
Traders now look to the Asian open for the first market verdict on the risk to Saudi infrastructure.
Sources: Investinglive, Financial Times
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