Houthi Attack Has No Impact on Crude Supply, but Geopolitical Tensions Remain

Brent crude retreated after initially jumping above $70 per barrel on March 8 following the news that Saudi Arabian oil facilities were attacked in a drone strike organized by Houthi militants. This parallels an earlier attack on Saudi oil infrastructure at Abqaiq in September 2019. The Houthi movement in Yemen claimed responsibility for that event as well, which knocked out approximately 1 million barrels per day for the month (roughly 1% of global supply).