Brent Oil Hits US$113, Highest Since May, After Houthi Strikes
Brent crude settled at US$113.17 after Houthi attacks on Saudi oil infrastructure; BUDI95 keeps eligible Malaysians at RM1.99 per litre.
What happened1/4 Brent crude settles at US$113.17 after Houthi strikes
Brent futures rose US$4.35, or 4.0%, to settle at US$113.17 a barrel on Thursday. That is the highest close since May 4.
The jump followed Houthi attacks on Saudi oil infrastructure. Saudi Aramco told staff to evacuate its headquarters in Dhahran, Reuters reported.
US West Texas Intermediate crude rose US$2.32, or 2.4%, to settle at US$99.47.
The real numbers2/4 The numbers behind the spike
US$113.17Brent crude close (Thursday)US$99.47WTI crude close (Thursday)17 million bpdMiddle East crude exports last weekMorgan Stanley estimated Middle East crude exports at around 17 million barrels per day last week. Kpler put the 12-month pre-Iran-war average at about 18 million bpd.
Analysts at Ritterbusch and Associates called it a strong injection of risk premium tied to the Houthi attack on Saudi infrastructure.
Photo: Photo: U.S. National Archives / CC0 1.0 How it affects your wallet3/4 Your RON95 price is not moving yet
Under BUDI95, eligible Malaysian citizens buy RON95 at the subsidised price of RM1.99 per litre within a monthly quota. The subsidy absorbs global price swings, so your pump price does not jump overnight.
If you are not eligible, you pay the unsubsidised market price, which changes weekly. Reports differ on the current monthly quota, so check MOF (mof.gov.my) before quoting a litre figure.
The direct effect on most Malaysian households today is small. The subsidy is the buffer between US$113 Brent and the RM1.99 you see at the pump.
Why it matters4/4 How BUDI95 works as a price shield
BUDI95 (BUDI MADANI RON95) sets a fixed subsidised price of RM1.99 per litre for eligible citizens. The government absorbs the gap between that price and the global crude cost.
When Brent hits a five-month high, the subsidy cost to the government rises, but your litre price stays the same. The unsubsidised price for non-eligible buyers adjusts weekly to reflect the new global cost.
The system is designed so that a 4% spike in Brent does not become a 4% spike at your petrol station.
Brent crude close (Thursday) US$113.17 01/01The numbers behind the spike Brent crude close (Thursday)
Questions people ask
Will my RON95 price go up because oil hit US$113?
If you are an eligible BUDI95 citizen, your RON95 stays at RM1.99 per litre within your monthly quota. The subsidy absorbs the global price change. Non-eligible buyers pay the unsubsidised price, which changes weekly.
What is the monthly quota for BUDI95?
Reports differ on the current figure. Check mof.gov.my ↗ for the latest quota before planning your fuel budget.
Source: Ministry of FinanceThe Star
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