Crude oil rose toward $98 per barrel on Thursday, rebounding from the previous session’s losses after a drone attack on Saudi Aramco’s Shaybah oil field killed two people. The strike highlighted escalating tensions in the Middle East and intensified worries about potential disruptions to energy supplies. In response to the deteriorating security environment, the US has ordered some personnel and family members to leave its embassies in Saudi Arabia.
At the same time, Ukraine this week launched large-scale drone attacks on Russia, focusing on key oil infrastructure and signaling Kyiv’s determination to curb Moscow’s diesel exports under an agreement between Presidents Trump and Putin. However, the upside for oil prices may be limited by increasing crude shipments from the Middle East, with export flows approaching prewar levels. Saudi Arabia’s crude exports climbed 7.9% in August, reaching their highest level since March, while Russia is expected to deliver its first diesel shipment to the US on Thursday.