HOUSTON: Brent touched USD110 a barrel for the first time since May on Friday on worries that escalating tensions in the Middle East could further tighten supplies, while investors assessed how much diesel Russia could supply to the global market.
Brent crude futures settled USD3.94, or 3.7 percent, higher at USD109.86, the highest since May 19, while US West Texas Intermediate crude futures closed USD3.44, or 3.5 percent, higher at USD101.41, the highest since September 17.
So far this week, Brent has risen 4.9 percent and WTI 10.4 percent.
“WTI and Brent reversed earlier losses as escalation fears resurfaced amid rumours of attacks on Saudi energy infrastructure,” research and consultancy Energy Aspects said in a note.
“Israeli reports suggest Iran may be preparing a pre-emptive strike following unusual military movements detected by Western intelligence.
Although unverified, these developments reinforce our view that persistent escalation risks will keep flat prices supported,” Energy Aspects added.
A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards the Red Sea city of Yanbu.
The port is critical for Saudi Arabia’s efforts to bypass the Strait of Hormuz and keep oil flowing to international markets.
Initial reports indicated no damage to Yanbu’s infrastructure, consultants Rapidan Energy Group said.
Supply concerns also increased as attacks around the Strait of Hormuz surged over the past 10 days, with Iran saying it was stepping up strikes in response to the US blockade of its ports and....
