By Georgina McCartney
HOUSTON, Oct 20 (Reuters) - Oil prices slipped from a five-month high during a choppy session on Tuesday as traders priced in Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf.
Yemen's Iran-aligned Houthis said on Monday they launched several attacks on Saudi energy, airport and military targets, such as an Aramco site in Yanbu, the Shaybah oilfield, Riyadh's King Khalid International Airport and Abha airport.
Saudi authorities did not immediately
confirm the Houthi claims and Reuters could not independently verify them.
Brent crude futures fell 67 cents or 0.61% to $108.88 at 10:09 a.m. EDT. Earlier in the session the front-month contract reached $111.99, a five-month high.
The November contract for US West Texas Intermediate crude, which expires on Tuesday, was up 88 cents or 0.85% at $104.54, down from the session high of 110.48, the highest since April for a nearby contract. The more active December contract was down 45 cents or 0.46% at $98.09 a barrel.
"Oil prices remain well-supported ... This suggests the market is pricing in a significant risk premium, given the situation's volatility," ING analysts said in a note on Tuesday.
At least 18 vessels were reportedly attacked over two weeks, which keeps the risk premium intact, shiptracker Kpler said in a note on Monday.
Also on Monday, a Houthi attack on a training camp for government security forces in Yemen's Shabwa province killed 58 people and injured more than 200.
The renewed attacks heightened fears about regional stability and underscored continuing risks to energy supply from the region, keeping oil prices above $100 a barrel.
DIESEL SUPPLY CRUNCH
Russian diesel cargoes are returning to their traditional destinations after the US suspended sanctions and secured the lifting of an export ban, with at least two tankers signaling trips to Turkey and Brazil in recent days, according to shipping data from Kpler and LSEG.
The US is working with domestic refiners to squeeze more crude through the refining complex, US Energy Department Under Secretary Kyle Haustveit said on Tuesday at the Drake Forum in Titusville, Pennsylvania.
In the US, analysts expected crude oil stockpiles to have fallen last week along with product inventories, a preliminary Reuters poll showed on Monday.
(Additional reporting by Alex Lawler in London, Anjana Anil in Bengaluru and Siyi Liu in Singapore; Editing by Sonali Paul, Clarence Fernandez and Franklin Paul)
