Oil prices rise as attacks on Saudi Arabia overshadow Trump's diesel deal
USO•Brent rose 2% to $106.79 a barrel and U.S. West Texas Intermediate gained 1.8% to $93.54 as attacks on Saudi Arabia and tankers near the Strait of Hormuz overshadowed potential additional diesel supplies.
1. Attacks lift oil prices
Oil prices climbed to near two-week highs on Monday after attacks on Saudi Arabia and tankers raised concerns about Middle East exports. Brent futures rose $2.07 to $106.79 a barrel, their highest since September 29, while U.S. West Texas Intermediate gained $1.69 to $93.54. The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300; further attacks occurred on Sunday. A tanker was struck by a drone near Oman's Sohar, and another was damaged while transiting the Strait of Hormuz.
2. Diesel and production outlook
Trump said Russia would immediately supply more than 300,000 metric tons of diesel to U.S. and global markets, with more to come. ICE gasoil futures fell 2.3% to $1,449 per metric ton. Goldman Sachs raised its December Brent price forecast to $90 a barrel from $85, estimating a risk premium of just over $20. Shell, Chevron and BP were seeking to redeploy personnel and restore Gulf of Mexico production after Hurricane Isaias made landfall Saturday.
