US energy shares gain as Houthi tanker attacks push Brent crude to $100
XLE•Oil prices and analyst comments
- Brent crude futures LCOc1 rose 6.7% to $100.37 per barrel by 1401 GMT, crossing $100 for the first time since May 26. U.S. West Texas Intermediate crude CLc1 was up 5.5% at $91.91 per barrel. O/R
- PVM Energy analyst John Evans said rerouting the oil shipments could more than double voyage times from the Saudi port of Yanbu to China, from over 20 days to more than 50 days.
- Middle East oil production was likely to recover more slowly than markets expect because inbound vessel traffic remains subdued amid the renewed conflict, keeping crude markets tight and supporting prices, said UBS analyst Giovanni Staunovo.
Energy stocks and refiners advance
- Shares of Exxon Mobil XOM.N and Chevron CVX.N rose 1.6% and 1.9%, respectively. Diamondback Energy FANG.O, Devon Energy DVN.N, ConocoPhillips COP.N and Occidental Petroleum OXY.N were up between 1.7% and 2.7%.
- Refiners Valero Energy VLO.N, Marathon Petroleum MPC.N and Phillips 66 PSX.N also gained between 1.1% and 1.3%.
Energy shares rise as Brent crude tops $100
U.S. energy shares rose on Thursday as Brent crude touched $100 a barrel, extending a five-day rally after attacks on two Saudi oil tankers heightened concerns over global oil supply disruptions.
Houthi forces in Yemen have widened the conflict by targeting vessels carrying Saudi oil in the Bab el-Mandeb strait, after declaring a naval blockade on Saudi shipments, raising the prospect of disruptions at another key oil transit chokepoint alongside the Strait of Hormuz.
