Oil prices steady after gains on Iran's new tactics to target tankers
USO•Oil prices steadied after rising on attacks in the Gulf and Iranian comments about new tactics to target ships. Brent was up 13 cents at $105.56 a barrel, while U.S. West Texas Intermediate gained $1.25, or 1.33%, to $95.39, its highest in more than two weeks.
1. Prices and supply concerns
Brent crude futures were up 13 cents at $105.56 a barrel, and U.S. West Texas Intermediate crude gained $1.25, or 1.33%, to $95.39. Attacks on ships crossing the Strait of Hormuz and military strikes between Saudi Arabia and the Houthis supported prices as market participants worried about lower regional oil exports, UBS analyst Giovanni Staunovo said.
2. Attacks across the Gulf
Iranian officials said Iran had begun using different offensive tactics about 10 days ago but declined to give details. Iran's Revolutionary Guards Navy said a container ship sank south of the Strait of Hormuz after hitting a naval mine and catching fire. The Iran-allied Houthis attacked an administrative building belonging to Saudi Aramco in Dhahran, causing a limited fire, Saudi Arabia's energy ministry said.
3. Diesel supply outlook
Gulf oil flows excluding Iran rose in September to more than 81% of prewar levels, while Iranian exports fell to zero because of a U.S. blockade. The International Energy Agency said constrained diesel supplies could persist well into next year and that easing Russian diesel export restrictions was unlikely to materially change the global gasoil market balance.
