Brent crude holds near five-month high on Middle East tension
USO•Oil prices advanced, with Brent up 0.50% to $110.10 a barrel as traders priced in geopolitical risk from Houthi attacks on Saudi infrastructure and reports of vessel attacks in the Gulf. US crude and product inventories were expected to have fallen last week, a preliminary poll showed.
1. Oil prices rise
Brent futures climbed 55 cents to $110.10 a barrel by 0319 GMT on Tuesday, after reaching $110.70 in the previous session, their highest since May 20. The November WTI contract rose 0.24% to $103.91 ahead of its expiry, while the more-active December contract gained 39 cents to $98.93. ING analysts said prices remained well-supported by a significant risk premium, which could erode slowly if oil flows continued uninhibited.
2. Attacks and supply risks
Yemen’s Houthis said they had attacked Saudi energy, airport and military targets, including an Aramco site in Yanbu and the Shaybah oilfield. Saudi authorities had not immediately confirmed the claims, and the attacks could not be independently verified. Shiptracker Kpler said at least 18 vessels were reportedly attacked over two weeks. The article also cited a preliminary poll showing US crude and product inventories were expected to have fallen last week, and said Russia’s crude production rose by 65,000 barrels per day in September to 8.43 million bpd.
