WTI Tracks Brent Toward $120 as Saudi-Houthi Risk Builds

WTI crude is being pulled higher alongside Brent, which is now approaching the $120 per barrel mark amid escalating tensions between Saudi Arabia and Houthi forces. The rally comes despite limited fundamental shifts in physical crude markets, suggesting geopolitical risk premium is the primary driver.

Notably, backwardated futures curves have flattened slightly while freight rates have eased, factors that would typically ease price pressure. Yet these offsetting moves have not been enough to counter the bid driven by Middle East supply fears, leaving WTI vulnerable to further headline-driven spikes.

For traders, this divergence between physical softness and futures strength signals a market pricing in tail risk rather than current supply-demand fundamentals.