Brent Crude Nears War-Driven Highs
Brent crude rose above $111 a barrel on Tuesday, reaching its highest level in five months and moving to within $3 of the peak recorded in early May, shortly after the conflict in the Middle East began. Prices climbed as renewed Houthi attacks and reports of vessel strikes in the Gulf heightened concerns over regional supply security. Yemen’s Iran-aligned Houthi movement claimed attacks on Saudi energy, airport and military facilities, including an Aramco site in Yanbu and the Shaybah oilfield. Shipping tracker Kpler reported that at least 18 vessels had reportedly been attacked over the previous two weeks, adding to concerns about disruptions to maritime trade and supporting the geopolitical risk premium in oil prices. Analysts cautioned that the risk premium could ease if oil shipments continue uninterrupted, although there are currently few signs of such a development. Meanwhile, US crude and refined-product inventories were expected to have declined last week.
Brent crude rose above $111 a barrel on Tuesday, reaching its highest level in five months and moving to within $3 of the peak recorded in early May, shortly after the conflict in the Middle East began. Prices climbed as renewed Houthi attacks and reports of vessel strikes in the Gulf heightened concerns over regional supply security. Yemen’s Iran-aligned Houthi movement claimed attacks on Saudi energy, airport and military facilities, including an Aramco site in Yanbu and the Shaybah oilfield.
Shipping tracker Kpler reported that at least 18 vessels had reportedly been attacked over the previous two weeks, adding to concerns about disruptions to maritime trade and supporting the geopolitical risk premium in oil prices. Analysts cautioned that the risk premium could ease if oil shipments continue uninterrupted, although there are currently few signs of such a development. Meanwhile, US crude and refined-product inventories were expected to have declined last week.