Oil touches US$110 a barrel for first time since May on Middle East, Russia supply fears
So far this week, Brent has risen 4.9% and WTI 10.4%
Oil prices have surged to US$110 a barrel for the first time since May, driven by worries over escalating tensions in the Middle East and Russia's ability to supply diesel to the global market. Brent crude futures settled at US$109.86, the highest since May 19, while WTI crude futures closed at US$101.41, the highest since September 17.
The increase in prices is attributed to fears of attacks on Saudi energy infrastructure and Iran's preparation for a pre-emptive strike following unusual military movements. Additionally, supply concerns have risen due to intensified Iranian attacks around the Strait of Hormuz, which has led to a sharp decrease in Gulf crude flows.
In response to these concerns, the International Energy Agency agreed to release more than 20 million barrels of fuel to the market, and the US requested proposals for an exchange of up to 17 million barrels of crude oil from the Strategic Petroleum Reserve.
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