Oil prices hit five-month high as Houthi attacks stoke Middle East supply fears
USO•Oil prices rose about 4% to a five-month high on Thursday as Houthi attacks in Saudi Arabia heightened concerns about energy supply disruptions. Brent settled at $113.17 a barrel and U.S. WTI at $99.47.
1. Prices climb on supply fears
Brent futures rose $4.35, or 4.0%, to settle at $113.17 a barrel, its highest close since May 4. U.S. West Texas Intermediate crude gained $2.32, or 2.4%, to settle at $99.47. Brent remained technically overbought for a third session in a week.
2. Regional supply risks
The price gains followed Houthi attacks in Saudi Arabia and reports that Saudi Aramco told staff to evacuate its Dhahran headquarters. Analysts cited attacks on ships in the Strait of Hormuz and Houthi strikes on Saudi infrastructure as risks to regional exports. Middle East crude exports were estimated at around 17 million barrels per day last week, compared with an average of about 18 million barrels per day in the 12 months before the Iran war.
3. Other oil-market developments
In Libya, a pipeline valve shutdown cut production at the Hamada and Tahara fields, the head of the National Oil Corporation said. Valero Energy reported its highest-ever quarterly profit, as fuel supply disruptions related to wars in Iran and Ukraine boosted third-quarter margins.
