Attacks on Saudi Arabia's King Khalid airport will continue, Yemen's Houthis say

Saudi Arabia's King Khalid Airport in Riyadh faces continued attacks, Yemen's Houthis said on Sunday, according to Reuters. The statement followed hours after the kingdom said flights had resumed despite repeated Houthi attacks.

Warning that the facility would "never be safe", Houthi military spokesperson Yahya Saree called on airlines, airport staff and travellers to avoid it. He said the group had "conducted three military operations with dozens of ballistic missiles," and claimed that the airport strike had achieved its target.

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Other sites attacked by the militant group included Saudi Arabia's King Fahd International Airport in Dammam, Najran airport and Khamis Mushait airbase.

Over the weekend, a Saudi-led coalition said it had intercepted and destroyed two ballistic missiles that Yemen's Houthis had launched towards Taif and Yanbu.

WTI Oil: Key Questions Answered

What Defines WTI Oil?

Traded on international markets, WTI Oil is a variety of Crude Oil. WTI stands for West Texas Intermediate and ranks alongside Brent and Dubai Crude as one of the three major types. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. This high-quality Oil is regarded as easy to refine. Sourced in the United States, it is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. WTI serves as an Oil market benchmark, with its price regularly cited in media reports.

What Determines WTI Oil Prices?

Supply and demand underpin WTI Oil prices, as they do for other assets. Stronger global growth can therefore lift demand, while weak global growth can have the reverse effect. Supply disruptions arising from political instability, wars and sanctions can also affect prices. Another major influence is the decision-making of OPEC, a group of leading Oil-producing countries. Since Oil is traded predominantly in US Dollars, the currency's value also shapes WTI Crude Oil prices: a weaker US Dollar can make Oil more affordable, while a stronger one can have the opposite effect.

Why Do Inventory Figures Affect WTI Oil Prices?

WTI Oil prices respond to the weekly Oil inventory reports released by the American Petroleum Institute (API) and the Energy Information Agency (EIA). Inventory movements reflect shifts in supply and demand. A decline in stocks can signal stronger demand and push Oil prices higher; a build-up can point to greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two sets of figures generally show similar results, coming within 1% of each other 75% of the time. As the EIA is a government agency, its data is regarded as more reliable.

Why Do OPEC Decisions Matter for WTI Oil Prices?

At meetings held twice a year, the 12 Oil-producing nations in OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently influence WTI Oil prices. Lower quotas can constrain supply and lift Oil prices, whereas an increase in OPEC production can have the reverse effect. The broader OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most notable among them.