Oil rises over 1% as traders assess shipping flows; monthly gains in sight
XLE•ADNOC buys VLCCs as tanker supply tightens
Abu Dhabi National Oil Co (ADNOC) has bought five very large crude carriers (VLCCs) for about $590 million, three sources familiar with the matter said, expanding its fleet as conflicts in the Red Sea and the Strait of Hormuz tighten tanker supply.
Elsewhere, Ukraine's military said it hit Russia's Volgograd oil refinery overnight on Friday, causing a fire at the facility.
"Brent is likely to remain in a relatively wide $80-100 per barrel range in the near term as the market reacts to geopolitical risks," said Paolo Broccardo, CEO of BankPro.
Geopolitical risks remain for oil shipping routes
A drone strike that sparked fires on two gas vessels in Egypt's Mediterranean port of Damietta has raised a new threat to shipping through the Suez Canal, one of the last major export routes available to Saudi oil amid the expanding U.S.-Iran war.
