Oil touches USD110 a barrel for first time since May
HOUSTON: Brent touched USD110 a barrel for the first time since May on Friday on worries that escalating tensions in the Middle East could further tighten supplies, while investors assessed how much diesel Russia could supply to the global market. Brent crude futures settled USD3.94, or 3.7 percent, higher at USD109.86, the highest since May 19, while US West Texas Intermediate crude futures…
Oil prices reached USD110 a barrel for the first time since May, driven by concerns over escalating tensions in the Middle East and potential supply disruptions. Brent crude futures settled at USD109.86, while US West Texas Intermediate (WTI) crude futures closed at USD101.41, both marking their highest levels since May 19 and September 17, respectively.
Analysts attribute the surge to Israeli reports suggesting Iran may be preparing a pre-emptive strike following unusual military movements detected by Western intelligence. A Saudi-led coalition intercepted and destroyed a ballistic missile headed towards the critical port of Yanbu, which plays a crucial role in Saudi Arabia's oil exports.
Additionally, Russia faced attacks on its oil refinery, raising doubts about its ability to supply the global market with diesel fuel. In response to these developments, the International Energy Agency agreed to release more than 20 million barrels of fuel to the market, along with a request for proposals to exchange up to 17 million barrels of crude oil from the United States' Strategic Petroleum Reserve.
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