Oil prices climbed about 2% to a five-month high on Thursday as Houthi attacks in Saudi Arabia stoked concerns about energy supply disruptions. Brent rose 2.2% to $111.24 a barrel, while U.S. WTI gained 1.2% to $98.29.
Brent futures rose $2.42, or 2.2%, to $111.24 a barrel at 10:45 a.m. EDT, while U.S. West Texas Intermediate crude gained $1.14, or 1.2%, to $98.29. Brent was in technically overbought territory for a third time in a week and was set for its highest close since May 18.
Saudi Aramco had reportedly told staff to evacuate its headquarters in Dhahran as fighting between Saudi Arabia and Yemen’s Houthis intensified. An analyst said attacks on ships in the Strait of Hormuz and Houthi strikes on Saudi Arabia and its oil infrastructure outweighed stronger Middle East export flows. Morgan Stanley analysts estimated regional crude exports at about 17 million barrels per day last week, compared with an average of about 18 million bpd in the 12 months before the Iran war.
In Libya, a pipeline valve connecting the Hamada and Tahara oilfields to Zawiya port was shut, reducing production at both fields. Valero Energy posted its highest-ever quarterly profit as Middle East conflict disruptions lifted refining margins in the third quarter.
