Oil prices rise more than 1% as supply concerns linger
USO•Brent rose 1.2% to $114.47 a barrel and U.S. West Texas Intermediate gained 1.4% to $100.84 after Houthi attacks in Saudi Arabia heightened concerns about Middle East supply disruptions.
1. Prices advance
Oil prices rose more than 1% on Friday. Brent gained $1.30 to $114.47 a barrel, while WTI rose $1.37 to $100.84. Brent was set to finish higher for a third straight week, and WTI for a second.
2. Supply concerns
Saudi Aramco reportedly ordered the evacuation of its headquarters in Dhahran on Thursday as fighting intensified between Saudi Arabia and Yemen-based Houthis. ING analysts said renewed escalation in the Persian Gulf could threaten oil flows, while the possibility of escalation could keep a geopolitical risk premium in prices.
3. Other disruptions
Clashes have continued near Bab el-Mandeb, a shipping chokepoint at the mouth of the Red Sea. In Libya, a pipeline valve linking the Hamada and Tahara oilfields to Zawiya port was shut, reducing production at both fields, the National Oil Corporation’s head said.
