Brent Tops $110 as Tanker Attacks Threaten Persian Gulf Supply
Crude oil prices extended their climb today, with Brent topping $110 per barrel again earlier in the day, and WTI back at over $100, as traders turn increasingly pessimistic about the resumption of normal oil flows out of the Persian Gulf. At the time of writing, Brent crude was trading at $109.68 per barrel, with West Texas Intermediate at $98.55 per barrel. Brent crude is trading at its highest…
Crude oil prices reached new heights as concerns about the safety of oil flows from the Persian Gulf mounted. Brent crude surpassed $110 per barrel, marking its highest level in five months, while WTI reached over $100. The surge in prices stems from a string of tanker attacks in the Strait of Hormuz, disrupting oil exports. Kpler reported at least 18 attacks in the past two weeks, causing the daily average flow of oil out of the Gulf to drop to 8.5 million barrels, down from over 20 million barrels two weeks ago.
Despite some oil still making it through, analysts say the market is pricing in a significant risk premium due to the ongoing Middle Eastern tensions. The Yemeni Houthis have also escalated the conflict, targeting Saudi Arabia's energy infrastructure, contributing to the market's volatility.
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