Brent hits five-month high on escalating Middle East conflict
USO•Brent crude rose 2.9% to $112.01 a barrel, after reaching $112.68, its highest level since May 18. Attacks in Saudi Arabia and on vessels near the Strait of Hormuz raised concerns about supply disruptions.
1. Brent reaches five-month high
Brent crude futures gained $3.19, or 2.9%, to $112.01 a barrel by 1311 GMT on Thursday, after touching $112.68, the highest since May 18. US West Texas Intermediate rose $2.41, or 2.5%, to $99.56, after earlier reaching $100.09.
2. Attacks stoke supply concerns
The rise followed Houthi attacks in Saudi Arabia and attacks on ships in the Strait of Hormuz. Saudi Aramco instructed staff to evacuate its Dhahran headquarters and work remotely, while the US State Department ordered some diplomats and family members to leave missions in Saudi Arabia and plans to withdraw family members from other missions in the region. Iran’s IRGC Navy said four vessels involved in illegal oil transfers were hit and caught fire, and three others collided with mines west of the Strait of Hormuz.
3. Other supply and policy developments
Morgan Stanley analysts estimated Middle East crude exports were around 17 million barrels per day last week. Libya’s National Oil Corporation said a shut pipeline valve had reduced production at the Hamada and Tahara oilfields. The US administration is offering to loan up to nearly a third of the one-million-barrel emergency heating oil reserve, and the European Parliament approved a three-year delay to methane emissions rules for oil and gas imports.
