Oil rises on Middle East supply worries
USO•Brent crude rose 0.78% to $109.64 a barrel and U.S. West Texas Intermediate gained 0.78% to $98.58 as traders watched shipping risks and threats to Saudi oil infrastructure.
1. Prices edge higher
Brent crude futures rose 85 cents to $109.64 a barrel, while U.S. West Texas Intermediate crude gained 76 cents to $98.58. Traders were wary of Red Sea shipping risks and threats to oil infrastructure in Saudi Arabia.
2. Shipping and infrastructure risks
Iran's Revolutionary Guards Navy said a supertanker caught fire after striking a sea mine south of the Strait of Hormuz. Shiptracker Kpler said at least 18 vessel attacks were reported over two weeks. The Houthis claimed responsibility for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha.
3. Inventories and fuel output
Prices had fallen in the previous session after Iran's president discussed mediation efforts with Pakistan's army chief. U.S. Energy Department officials said they were working with refiners worldwide to boost fuel output amid a diesel shortage. Analysts polled in an extended survey estimated U.S. crude inventories fell by about 800,000 barrels in the week ended October 16.
