Oil prices set for fourth straight monthly gains as tanker attack highlights supply risks
USO•Oil prices rose to their highest levels since April, with Brent on track for a 13% monthly gain and WTI for a 15% rise. A tanker attack in the Strait of Hormuz and a Libyan pipeline shutdown of about 15,000 barrels per day highlighted supply risks.
1. Prices rise as supply risks mount
Brent futures rose 2.5% to $117.75 a barrel and WTI climbed 2.7% to $104.79, putting both benchmarks on track for a fourth straight month of gains. Brent was set to finish October 13% higher, while WTI was heading for a 15% increase.
2. Tanker and pipeline incidents
A tanker in the Strait of Hormuz was hit by explosive devices attached by a small boat, the UKMTO said. It was not immediately clear who was behind the attack. Libya's National Oil Corporation said an armed group shut a valve on the Hamada crude pipeline, halting about 15,000 barrels per day of flow.
3. Conflict and market uncertainty
Analysts said traders were focused on Middle East oil flows and the risk of escalation. Saxo Bank said uncertainty around the conflict and upcoming elections could make oil prices more volatile; it expects crude to trade in a higher range of $70 to $90 a barrel even after the conflict ends, versus a pre-war range of $60 to $70.
