Yemen's Houthi militias have extended their strikes beyond Saudi oil infrastructure to the Shaybah oilfield, raising the risk that Saudi Arabia could be forced to shut in some of its production, according to OilPrice.com. On Tuesday, October 20, 2026, ICE Brent was trading at $108 per barrel, about $5 above the US benchmark WTI. The source describes the Saudi-Houthi conflict as the main supply narrative of the week, though it does not quantify the volumes that could be affected.
The risk premium is spreading across energy markets. Asian liquefied natural gas prices rose above $30 per MMBtu on the JKM benchmark, their highest level since December 2022, as repeated attacks on tankers across the Middle East and Europe's worsening winter outlook pushed prices higher, according to the report. The source also notes the first Houthi attack on LNG shipping, with the UK Maritime Trade Operations (UKMTO) reporting strikes on a laden vessel that sought to transit the Bab el-Mandeb Strait.
The Qatari-owned al Kharsaah was reported to be the only LNG carrier near Yemen's coast over the weekend, making a rare Red Sea transit to deliver Qatari LNG to Poland. European gas markets are also under pressure. The Dutch TTF benchmark has risen sharply, which OilPrice.com says is paving the way for global LNG price increases.
EU inventory builds have effectively stopped, with EU-wide storage capped below 75% of capacity. Demand patterns in Asia are mixed. The report states that China and Japan have been buying 8-10% less LNG year-on-year as they seek to maximize nuclear and renewable generation, while Europe's LNG imports averaged 175,000 tonnes over the past 30 days, up 9.5% compared with the five-year seasonal average.
On the crude side, China's September crude throughput rose 0.6% from August to 14 million barrels per day, supported by strong product exports, even as crude imports fell 21% year-on-year and implied inventories declined by 530,000 barrels per day. Saudi Arabia's crude sales strategy is also under strain. Term contract talks between Saudi Aramco and Asian refiners for 2027 have stalled, according to the report, citing Bloomberg.
The dispute centers on whether spot purchases made during the US-Iran war count toward 2026 obligations, and some buyers are resisting additional 2027 volumes. Policymakers are responding. IEA chief Fatih Birol said member countries could coordinate further emergency oil releases, while prioritizing the immediate release of 20 million barrels of diesel, and acknowledged that there is little chance of a return to normalcy in 2027, according to Reuters.
In the United States, President Trump announced an $8 billion USDA fuel relief program for farmers, as the White House seeks to offset soaring diesel and fertilizer costs ahead of the midterm elections, according to CNN. Sources: OilPrice.com (Tom Kool, October 20, 2026), with references to Bloomberg, Reuters, CNN, UKMTO, and other outlets cited in the original report.
Source: oilprice.com