Oil touches $110 a barrel for first time since May on Middle East, Russia supply fears
USO•Brent crude touched $110 a barrel and settled up 3.7% at $109.86, its highest since May 19, as traders weighed Middle East supply risks and uncertainty over Russian diesel deliveries. WTI rose 3.5% to $101.41.
1. Crude prices rise
Brent crude futures settled $3.94 higher at $109.86 a barrel, while U.S. West Texas Intermediate futures rose $3.44 to $101.41. This week, Brent gained 4.9% and WTI rose 10.4%.
2. Supply risks mount
A Saudi-led coalition said it intercepted a ballistic missile launched toward Yanbu, a port used to help keep oil flowing to international markets. Initial reports indicated no damage to Yanbu infrastructure. Attacks around the Strait of Hormuz have increased over the past 10 days, and analysts said Gulf crude flows had fallen sharply. Russia’s Ryazan refinery suspended operations at a primary crude distillation unit after a drone attack. The International Energy Agency agreed to release more than 20 million barrels of fuel, and the United States offered up to 17 million barrels of crude from its Strategic Petroleum Reserve for exchange.
