Houthi attacks on Saudi Arabia continue. Riyadh disclosed that two contractors were killed in a drone attack that targeted the giant Shaybah oilfield (in the Empty quarter region near the UAE border). Another person died on an attack against the Dammam airport, near the country’s top oil installations in the Eastern province.

MIDDLE EAST OIL FLOWS: Despite a wave of Iranian attacks since the beginning of October, total Middle Eastern crude oil flows (ex-Iran) remain resilient. Flows are becoming, however, lumpier (days of multiple tanker crossings followed by days of very few tankers). Overall, Middle East (ex-Iran) crude flows, including Strait of Hormuz plus all the bypass routes, are holding at ~75% of pre-war levels, down from a ~95% *peak* in the last days of September. Crucially, despite the drop in recent days, the Oct 1-Oct 10 period average remains above Sep full month average (and well above full month August). Kuwait is struggling the most right now. UAE, Iraq and KSA (the last one using both Persian Gulf and Red Sea) are doing relatively well. All said, the risk is to the downside if the Iranian attacks continue (and if they become more successful). Iran has sunk at least one container ship in the SoH over the last 24 hours. The same goes for Red Sea flows under Houthi / Iraq militias potential attacks. For Iran itself, Hormuz remains closed. One key indicator to follow: despite the Iranian attacks against SoH traffic, the physical premium for Middle Eastern crude has come down significantly in recent days, touching today a near 2½-month low.