Oil prices rise 2% as attacks on Saudi Arabia overshadow Trump's diesel deal
USO•Oil prices rose 2% to near two-week highs as attacks on Saudi Arabia and tankers near the Strait of Hormuz outweighed prospects for increased diesel supplies. Brent reached $106.76 a barrel and WTI $93.69.
1. Attacks lift crude prices
Brent crude futures rose $2.04, or 2%, to $106.76 a barrel, their highest since September 29. U.S. West Texas Intermediate crude gained $1.84, or 2%, to $93.69. The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300, with further attacks on Sunday. A tanker was struck by a drone near Oman's Sohar, and another was damaged while transiting the Strait of Hormuz.
2. Supply outlook remains uncertain
Goldman Sachs raised its December Brent forecast to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel. Trump said Russia would immediately supply more than 300,000 metric tons of diesel to U.S. and global markets, with more to follow; ICE gasoil futures fell 2.3% to $1,449 per metric ton. Analysts questioned the deal's immediate impact, while Trump also announced a Russia-Ukraine ceasefire covering energy infrastructure.
