Oil prices rise as attacks on Saudi Arabia overshadow Trump's Russian supply announcements
USO•Oil prices rose about 1.2% on Monday, with Brent at $106.19 a barrel and WTI at $92.96, as attacks on Saudi Arabia and tankers in the Strait of Hormuz overshadowed announcements of additional Russian diesel supplies and an energy ceasefire.
1. Prices rise on supply risks
Brent crude futures rose $1.24, or 1.2%, to $106.19 a barrel by 1124 GMT, their highest since September 29. US West Texas Intermediate crude gained $1.11, or 1.2%, to $92.96.
2. Attacks lift risk concerns
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 reported on Sunday. A tanker was struck by a drone near Oman's Sohar, while another was damaged while transiting the Strait of Hormuz. SEB analyst Bjarne Schieldrop said the attacks shattered a sense of normality in exports through the strait and helped lift prices.
3. Russian diesel announcements
Goldman Sachs raised its December Brent forecast to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel. Gasoil futures fell 2.3% after Trump said Russia would immediately supply more than 300,000 metric tons of diesel to US and global markets, with more to come later. Trump also announced that Ukraine and Russia had agreed to an energy ceasefire; Ukrainian leader Volodymyr Zelenskiy accused Russia of violating it on Monday.
