Oil set for fourth monthly gain as Hormuz tanker attack highlights supply risks
USO•USO•USO•USO•Oil prices rose and were on track for a fourth monthly gain as a tanker attack in the Strait of Hormuz heightened supply concerns. Brent was set to end October 13% higher and WTI 15% higher.
Brent December futures rose $2.27, or 1.98%, to $117.15 a barrel, while the more-active January contract gained $2.19 to $112.99. WTI climbed $1.79, or 1.75%, to $103.79. For October, Brent was on course to gain 13% and WTI 15%.
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. Analysts said security concerns and uncertainty over US-Iran diplomacy were raising the perceived risk of escalation and supply disruption. Saxo Bank said crude was expected to trade in a higher range of $70 to $90 a barrel after the conflict ends, compared with a pre-war range of $60 to $70, citing renewed-hostilities risk and inventory replenishment.
