Oil prices rose after a tanker was hit in the Strait of Hormuz, with Brent on course for an 11% monthly gain and WTI for a 14% rise. The attack heightened concerns about supply risks from the war on Iran.
Brent crude futures rose $1.20, or 1.04%, to $116.08 a barrel, while the more-active January contract gained $1.39 to $112.19. WTI futures climbed $1.37, or 1.34%, to $103.37. Brent was on course to finish October nearly 11% higher and WTI 14% higher.
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. Saul Kavonic of MST Marquee said continued action around the strait and doubts about a diplomatic path were keeping prices elevated.
Ole Hansen of Saxo Bank said oil prices could become more volatile in the coming weeks around Israel’s parliamentary election and the US midterm vote. He expects crude 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 the risk of renewed hostilities and a need to replenish inventories.
