Brent Closes at $114.14 a Barrel as Aramco Evacuates Dhahran Headquarters
Key Facts
EL7 data showed Brent crude closing at $114.14 a barrel on October 23 and West Texas Intermediate at $100.72, while Reuters reported that Aramco had asked employees to evacuate its headquarters in Dhahran and work remotely. Reuters's report was based on six people familiar with the matter, but said the reason for the evacuation was unclear. The move came amid renewed fighting between Saudi Arabia and the Houthis and concerns about shipping security in the region. Oil prices had risen in the previous session to their highest level in five months, according to a Reuters report on trading on October 22. Daily closing data show Brent rising from $108.82 on October 21 to $113.17 on October 22, then $114.14 on October 23.
Reuters reported that Saudi Arabia's benchmark index fell 2.5% on Thursday after the news of Aramco's headquarters evacuation, citing LSEG data. In the context of security risks near Dhahran, Reuters said a Houthi attack targeted King Fahd International Airport on Wednesday evening, killing two people and injuring eight. Airport operations resumed and air traffic returned to normal on Thursday. Aramco had previously been attacked at its Dhahran headquarters, according to AP, and two regional officials said the strike damaged the offices of the chief executive and senior officials, with no injuries. Sources did not disclose the reason for the evacuation the company requested on October 22.
Concerns also extended to shipping lanes: Iran said seven oil tankers caught fire or were damaged in the Strait of Hormuz overnight after being struck or colliding with sea mines. AP could not independently confirm the account. The agency also cited the British maritime operations monitor as saying October had seen the highest number of reported attacks on commercial shipping since March. In a separate incident, UKMTO said a crude oil tanker was struck by an unknown projectile while transiting the strait outbound, and that the crew was reported safe as authorities investigated. These incidents place tanker transit security among the factors markets are monitoring alongside developments in Saudi Arabia.
Shipping data cited by Reuters show that Middle East crude oil exports reached about 17 million barrels a day in the week before the report, compared with an average of about 18 million barrels a day during the 12 months before the war. The gap reflects lower flows relative to that average, as concerns about shipping disruptions grow. Meanwhile, Aramco Chief Executive Amin Nasser said the capacity of the East-West pipeline had increased from two million barrels a day to seven million barrels a day. The pipeline provides a route for transporting oil across Saudi Arabia, bypassing the Strait of Hormuz, according to the context reported by AP. Reuters noted that renewed fighting in recent weeks ended a United Nations-mediated truce in 2022 that had largely halted cross-border attacks.
Against the backdrop of price movements, the U.S. Energy Information Administration said the average spot price of Brent was $114 a barrel in September, up $23 from August, attributing the increase to attacks on oil infrastructure and tankers in the region. The agency forecast an average price of $105 a barrel in the fourth quarter of 2026, up $14 from the previous month's forecast. The estimate was based on the assumption that restrictions on Middle East oil flows would continue. The forecast comes amid a market that saw mixed daily closes, with Brent rising between October 21 and 23, according to EL7 data. At the start of trading on October 23, a Reuters report described oil as nearly steady after the previous session's rise.