Oil rises as hopes for diplomacy offset impact of renewed Houthi attacks
USO•Oil prices rose 0.39% as investors awaited the outcome of talks in Tehran and renewed Houthi attacks on Saudi Arabia highlighted risks. Brent was at $116.26 a barrel and U.S. WTI at $102.16.
1. Prices recover
Brent crude futures rose 45 cents to $116.26 a barrel by 0918 GMT, while U.S. West Texas Intermediate gained 40 cents to $102.16. Both benchmarks recovered after trading 1% lower earlier in the session.
2. Diplomacy and risks
Saudi Arabia, Turkey, Pakistan and Iran agreed to continue talks aimed at strengthening cooperation in peace and security. Brent had topped $117 last week after Iranian attacks on tankers near the Strait of Hormuz, and renewed Houthi attacks on Saudi Arabia kept regional risks in focus.
3. Shipping and supply
October was the worst month for commercial shipping attacks in the Strait of Hormuz and nearby waterways since tracking began in 2017. Gulf crude exports fell for a fourth straight week, flows through the strait were about 60% of normal, and global distillate inventories were nearly 5% below their five-year average, ANZ research said.
