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Tensions are rising in the Middle East, with Iran suspected of attacking oil tankers and Saudi Arabia’s facilities, raising market concerns about the impact on crude oil supplies and sending Brent and WTI oil prices higher.
internationaloil price Today (22nd) it rose by almost 2% in intraday trading.iran Reports of attacks on four oil tankers in the Persian Gulf, as well as attacks on Saudi Arabia’s oil fields and airports, have heightened market concerns about the potential impact and escalating hostilities in the Middle East.Oil Supply, even though oil exports through the Strait of Hormuz are currently gaining momentum.
Brent crude oil futures rose 2.1% to US$111.12 a barrel; West Texas Intermediate crude futures also rose nearly 2% to more than US$99 a barrel.
Press TV, an Iranian government-run television station, posted, however, that the date of the attack was not specified.
On the other hand, a drone attacked the Shayba oil field owned by Saudi Aramco, killing two people but not affecting operations; Another attack at King Fahd International Airport killed one person. In addition, the United States also ordered the evacuation of some embassy personnel and their families in Saudi Arabia.
The US-Iran war has disrupted oil transportation in the Persian Gulf, and global crude oil benchmark prices have surged more than 80% this year. The war is about to enter its ninth month, but there are still no clear signs of resolution.
Nevertheless, crude oil exports have recently increased and are close to pre-conflict levels. Some tankers have turned off their Automatic Identification System (AIS) signals to avoid detection; However, export transportation of petroleum products is still restricted.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said: “Continued military attacks and the risk of conflict re-escalating after the US midterm elections are providing support for oil prices. As a result, although the market has difficulty maintaining gains when oil prices fall, the market lacks enough confidence to make a sustained decline.”
Kuwait is one of the Persian Gulf oil producers which is increasing its crude oil exports. Al-Sabah, the chief executive of the country’s state-owned oil producer, said Kuwait’s current crude exports have returned to levels before the outbreak of the US-Iraq war. However, he pointed out that more tankers would still be needed to transport aviation fuel and diesel.
Summary FAQ
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Mainly due to market concerns about escalating hostilities in the Middle East, Iran reportedly attacked four oil tankers, and Saudi Arabia’s oil fields and airports were also attacked, causing investors to reevaluate oil supply risks, sending oil prices higher.
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Brent crude oil futures rose 2.1% to US$111.12 a barrel; West Texas Intermediate crude oil futures also rose nearly 2% once it crossed US$99 a barrel, indicating clear safe-haven buying in the market.
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Drone attack on Saudi Arabia’s Shaybah oil field kills two, but operations not affected; Another person was killed in the attack on King Fahd International Airport. The United States ordered the evacuation of some embassy personnel and their families in Saudi Arabia.
