Brent crude futures settled down 76 cents, or 0.69%, at $108.79 on Monday. The front-month contract reached $111.99 during the session.
November contracts for US West Texas Intermediate crude fell $1.87, or 1.8%, to $101.79. The more active December contract settled down 72 cents at $97.82 a barrel.
Eight analysts estimated crude inventories fell by about 800,000 barrels in the week ended 16 October. ING analysts said, "Oil prices remain well-supported... This suggests the market is pricing in a significant risk premium, given the situation's volatility."
Houthis launched attacks on Saudi energy, airport and military targets on Monday. A Houthi attack on a training camp in Yemen's Shabwa province killed 58 people and injured more than 200 on Monday.
At least 18 vessels were reportedly attacked over two weeks. Russian diesel cargoes are returning to traditional destinations after US suspended sanctions and secured lifting of an export ban.
At least 2 tankers signaled trips to Turkey and Brazil in recent days. US Energy Under Secretary Kyle Haustveit stated the US is working with domestic refiners to squeeze more crude through its refining complex on Tuesday.
US Energy Secretary Chris Wright stated the US is pushing shuttered domestic refineries to reopen on Tuesday. Iranian President Masoud Pezeshkian met with Field Marshal Asim Munir in Tehran.
Pakistan's mediation efforts resulted in an interim peace agreement signed in June. Israeli Prime Minister Benjamin Netanyahu spoke with US President Donald Trump on Sunday.
Netanyahu said he was "committed to completing the elimination of the Iranian regime".
