Brent hits five-month high as attacks on ships, Saudi sites fuel supply worries
USO•Brent crude reached $111.05 a barrel, its highest since May, as attacks claimed by Yemen’s Houthis on Saudi targets and reported vessel attacks in the Gulf fueled supply concerns. At least 18 vessels were reportedly attacked over two weeks, while analysts expected U.S. crude and product inventories to have fallen last week.
1. Oil prices rise
Brent crude futures reached $111.05 a barrel, the highest since May, and were trading at $110.80 at 0810 GMT, up 1.1%. U.S. West Texas Intermediate rose to $104.94, its highest since September, and was last at $104.80, also up 1.1%.
2. Attacks raise concerns
Yemen’s Iran-aligned Houthis said they launched attacks on Saudi energy, airport and military targets, including an Aramco site in Yanbu and the Shaybah oilfield. Saudi authorities did not immediately confirm the claims, which Reuters could not independently verify. Shiptracker Kpler said at least 18 vessels were reportedly attacked over two weeks.
3. Risk premium persists
ING analysts said prices remained supported by a significant risk premium, but that it would likely erode slowly if flows continued uninhibited. Analysts expected U.S. crude oil stockpiles and product inventories to have fallen last week, a preliminary poll showed.
