Brent crude oil briefly surpassed $112 per barrel on Thursday following a drone attack on Saudi Arabia‘s Shaybah oil field, operated by Saudi Aramco, which left two people dead. Meanwhile, European natural gas prices were trading at €89.5 per megawatt-hour, as constrained LNG supplies from the Middle East and low storage levels deepened concerns over winter energy adequacy.
Reduced liquefied natural gas (LNG) shipments from the Middle East, combined with depleted reserves, are intensifying fears about sufficient energy supplies heading into winter. Ongoing attacks on vessels in the Strait of Hormuz are casting doubt on how quickly natural gas exports from the region can be restored.
The situation raises the risk that tight supply conditions could persist well into 2027. According to data from October 21, European gas storage facilities were filled to just 74.58% — the lowest level for this time of year since records began in 2009.
Oil prices: Alarm in the wake of the attacks
Oil prices climbed as the attack on the Shaybah oil field highlighted escalating tensions across the Middle East and the threat of fresh disruptions to energy supplies. At the same time, the United States ordered some staff and their family members to evacuate American embassies in Saudi Arabia.
In Eastern Europe, Ukraine this week launched large-scale drone strikes against Russia, targeting critical oil infrastructure. The attacks underscore Kyiv’s determination to prevent Moscow from ramping up diesel exports as part of a deal between Presidents Donald Trump and Vladimir Putin.
However, further price gains may be tempered by rising crude oil shipments from the Middle East, with export flows approaching pre-war levels. Saudi Arabia’s crude exports rose 7.9% in August, reaching their highest level since March.
Meanwhile, Russia is expected to deliver its first diesel cargo to the United States on Thursday, a development linked to broader efforts to boost energy trade flows.
