Oil prices set to end week over $100 for first time in nearly 4 months
Oil prices are inching closer to the $100 mark as shipping routes come under rising attack. The Houthi grip on Yemen's Mocha port poses risks to Red Sea transport, while tankers in the Strait of Hormuz face threats that limit vessels in the Gulf. Diesel prices in the U.S. have soared past six dollars per gallon, and China's ongoing crude purchases might worsen supply disruption effects.
Oil prices edged higher on Friday, with both key benchmarks poised to surpass $100 a barrel for the first time since mid-May, as escalating attacks in the Middle East heighten concerns of supply disruptions. Brent crude futures climbed $1.05, or 1%, to $108.68 a barrel by 0045 GMT, while U.S. West Texas Intermediate crude increased 95 cents, also 1%, to $103.45 a barrel.
Analysts predict the benchmarks could potentially bounce back to the $119.48 price peak reached at the beginning of March. The ongoing U.S.-Iran conflict, combined with ongoing attacks on Middle Eastern energy facilities, has disrupted shipping routes and tightened global oil supplies. Iran has reportedly attacked 10 vessels near the Strait of Hormuz, following a U.S. strike on five Iranian oil tankers.
This volatile situation has driven diesel prices in the U.S. to above $6 per gallon for the first time ever. The outlook for crude prices remains uncertain, as China, the world's largest crude importer, could either amplify the impact of supply disruptions or further fuel price increases if it continues to buy.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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