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The attack in Saudi Arabia heightened concerns about supply cuts in the Middle East, sending Brent crude oil to US$114 and rising for three consecutive weeks. The market is also concerned about the escalating conflict between the United States and Iran and tight global fuel supplies.
saudi arabia Brent crude is set to rise for three consecutive weeks this week as attacks intensify and the threat of oil supply disruptions in the Middle East deepens.
Brent crude oil futures for December delivery rose 0.8% to $114.02 a barrel in Asian trading on Thursday. Brent crude oil futures rose more than 3% this week; West Texas crude oil stood at $99.iran The pro-Yemen youth movement claimed it had recently attacked the Red Sea port of Yanbu in Saudi Arabia and also carried out deadly attacks on an oil field and airport in Saudi Arabia.
An escalation of this wave of conflicts could lead to an expansion of the fighting around the Strait of Hormuz. Crude oil exported through the strait is now near pre-war levels. The US-Iran war is about to enter its ninth month. Brent crude oil and finished products have increased by more than 85% this yearoil price Prices are increasing rapidly, especially of diesel.
US President Trump told reporters at the White House on Thursday that the United States has “defeated” Iran and threatened to “escalate further”. The New York Times reported this week that the United States and Israel have drawn up plans to attack Iran again after the US midterm elections early next month.
Dennis Kisler, senior vice president of trading at BOK Financial Securities, said: “The latest geopolitical situation has intensified, indicating that attacks on Iran may intensify, which could lead to higher crude oil prices per delivery month.” “Most traders believe that based on the current situation, oil prices will probably remain high for some time.”
The Yemen-based youth movement has repeatedly attacked Saudi Arabia in recent months. Saudi Aramco reportedly evacuated its headquarters in Dhahran on Thursday due to the alert and told employees to work from home. The reason for the alarm is not clear.
Although crude oil exports from the Persian Gulf have resumed, local refined oil shipments are still restricted. Ukraine’s intensified attacks on Russian refineries as well as tight supplies have prompted governments to release stockpiles. Trump has also pushed for a number of measures in hopes of lowering oil prices ahead of the midterm elections, including a diesel deal with Russia.
On the other hand, pressure on Russia’s domestic fuel market eased slightly. Gasoline and diesel production have increased and fuel reserves are being replenished, the Interfax news agency reported, citing Russian government data.
Summary FAQ
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The main reason is that after the attack on Saudi Arabia, the risk of crude oil supply disruption in the Middle East increased, and the market was worried about the expansion of the war around the Strait of Hormuz, causing the price of Brent crude oil to rise to US$114.02 per barrel.
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The Iran-backed Yemeni youth movement claimed it recently attacked Saudi Arabia’s Red Sea port of Yanbu and also carried out deadly attacks on an oil field and airport, making the market more concerned about the security of energy supplies in the Middle East.
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In addition to the escalating conflict in the Middle East, Ukraine has stepped up its attacks on Russian refineries, restricted shipments of refined oil products and limited inventories, which also allowed countries to release their inventories, providing further support to oil prices.
