Oil prices gain on attacks in Saudi Arabia, Iran's new tactics to target tankers
USO•Oil prices rose after Houthi attacks in Saudi Arabia and Iran said it was using new tactics to target ships. Brent gained 0.82% to $106.56 a barrel, while WTI rose 1.55% to $95.60, its highest in three weeks.
1. Prices rise on attacks
Brent crude futures rose 87 cents to $106.56 a barrel, while US West Texas Intermediate gained $1.46 to $95.60, touching a three-week high. An analyst said attacks on ships transiting the Strait of Hormuz and strikes between Saudi Arabia and the Iran-allied Houthis were driving prices higher.
2. Attacks across the region
The Houthis attacked an administrative building belonging to state-owned Saudi Aramco in Dhahran, causing a limited fire, Saudi Arabia's energy ministry said. Iran's Revolutionary Guards Navy said a container ship sank after hitting a naval mine south of the Strait of Hormuz; a day earlier, a container ship and a tanker were hit by unknown projectiles in the strait.
3. Diesel supply concerns
The International Energy Agency said Russia's crude production rose by 65,000 barrels per day in September to 8.43 million bpd, but remained 870,000 bpd below the year-earlier level. It said constrained diesel supplies could persist well into next year and that easing Russian diesel export restrictions was unlikely to materially change the global gasoil market balance.
