Brent crude hits more than five-month high on concern over Middle East escalation
USO•Brent crude touched $114.72 a barrel, its highest level since May 4, after Houthi attacks in Saudi Arabia raised concern about energy supply disruptions. Brent was up 0.7% at $113.96, while WTI gained 1.1% to $100.57.
1. Oil prices rise
Oil prices rose on Friday after Houthi attacks in Saudi Arabia stoked concern over further disruption to Middle East energy supplies. Brent crude futures gained 79 cents, or 0.7%, to $113.96 a barrel by 0810 GMT, after reaching $114.72, the highest level since May 4. WTI gained $1.10, or 1.1%, to $100.57.
2. Weekly performance and risks
Brent was on track for a third consecutive weekly gain of almost 4%, while WTI was poised to finish the week down 0.8%. Saudi Aramco reportedly ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia and Yemen-based Houthis. Analysts cited the potential for supply disruption, volatile oil flows and elevated freight rates as factors affecting the market.
3. Other supply developments
In Libya, a pipeline valve serving the Hamada and Tahara oilfields was shut, reducing production at both fields, the head of the National Oil Corporation said. A Malta-flagged tanker carrying 40,000 metric tons of Russian diesel was heading toward New York. Russia had agreed to lift a self-imposed ban on diesel exports and supply global markets, including the US.
