Oil rises on Houthi attacks as U.S. inventories fall 3.06 million barrels

Key Facts

Oil prices rose as concerns mounted over a widening conflict and supply disruptions following Houthi attacks in Saudi Arabia, according to Reuters, alongside a larger-than-expected decline in U.S. crude inventories. The Associated Press reported on October 21, 2026, that the United States had ordered some of its diplomats to leave Saudi Arabia amid growing fears of an escalation in those attacks. Reuters linked oil's rise to what it described as "fears of a broader escalation of the conflict" triggered by the attacks in the kingdom. On inventories, U.S. Energy Information Administration data cited by the agency showed crude stocks fell by 3.06 million barrels in the previous week. Inventories stood at 412.5 million barrels after the draw, according to figures reported by Reuters. Analysts polled by the agency had expected a smaller decline of 820,000 barrels, putting the actual draw above the level they had forecast before the data release.

The supply concerns followed an earlier rise in crude prices, detailed in the Energy Information Administration's October 2026 report comparing Brent's performance in September with August. The Brent spot price averaged $114 a barrel in September, according to the report. That was $23 a barrel above the August average, a monthly comparison preceding the developments related to the Houthi attacks covered in the news reports. The agency said heightened risks associated with oil tankers transiting the region had added to shipping costs. It added that those risks had also increased "the risk premium reflected in oil prices," linking the security of tanker traffic to the cost of transporting crude and its pricing.

In corporate results, Tesla reported a decline in net income attributable to shareholders in the third quarter of 2026, according to the earnings report published through its investor relations office. Profit totaled $787 million, compared with $1,373 million in the third quarter of 2025, a year-on-year decline of 43%. Quarterly revenue was $28,046 million, compared with $28,095 million in the same period a year earlier. The company listed the annual revenue change at 0% after rounding in its results table, despite the decline in absolute value between the periods. Adjusted earnings per share, however, reached 48 cents, beating Wall Street analysts' expectations by 3 cents, according to the Associated Press. The average analyst forecast compiled by Tesla and published through its investor relations office was $0.45 a share for the third quarter of 2026, the benchmark exceeded by the reported adjusted earnings.

Meta reported revenue of $64.60 billion in the third quarter of 2026, according to the Associated Press's coverage of the company's results. That represented year-on-year growth of 26% compared with the corresponding period, in results announced on Wednesday evening. In the immediate response to the announcement, the company's shares rose 2.9% in after-hours trading, according to the agency's report published on October 21, 2026. For the fourth quarter of 2026, Meta forecast revenue of between $73 billion and $76 billion, according to the same coverage. In its oil market outlook for the same period, the Energy Information Administration projected in its October report that Brent would average $105 a barrel. With that estimate, the agency raised its forecast for the fourth quarter of 2026 by $14 a barrel from the previous month's report.