Oil climbs as Mideast conflict, tanker attacks persist
USO•Oil prices rose, with Brent up 0.73% to $105.48 a barrel and WTI up 0.64% to $92.44, as attacks on Saudi Arabia and two tankers heightened concerns about regional supply.
1. Conflict raises supply concerns
Oil prices extended gains on Monday after Yemen's Houthis stepped up strikes on Saudi Arabia and two tankers were attacked over the weekend. The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300; Saudi authorities reported injuries in another attack on the airport Sunday. President Donald Trump said the United States was considering joining Saudi strikes on the Houthis.
2. Tankers attacked
One tanker was struck by a drone near Sohar anchorage in Oman, while another was damaged by an unknown projectile while transiting the Strait of Hormuz. The attacks add to concerns over Middle East crude exports, which had recovered in September.
3. Forecasts and Gulf output
Goldman Sachs raised its December Brent forecast to $90 a barrel from $85, and estimated a risk premium of just over $20 a barrel. Shell, Chevron and BP were seeking to redeploy personnel and restore production at Gulf of Mexico platforms after Hurricane Isaias made landfall Saturday.
