Global oil prices have climbed above $100 a barrel as intensifying hostilities involving the US, Iran and Yemen’s Houthis fuel concerns that further attacks on shipping and energy infrastructure could disrupt international crude supplies.
Brent crude futures rose 2.2% during Asian trading on Wednesday to $100.07 a barrel, crossing the $100 mark for the first time in almost two months and reaching their highest level since July 24.
US benchmark West Texas Intermediate (WTI) gained 1.83% to $94.73 a barrel. Brent has now risen roughly 25% since early August as expectations of a durable resolution to the US-Iran conflict have diminished.
“Recent developments only reinforce the view that we’re still some way from a restart in talks,” ING commodities strategists Warren Patterson and Ewa Manthey said. “In the meantime, the market is likely to continue to price in a sizeable risk premium.”
The latest increase followed another escalation in maritime attacks across the region.
US forces struck five Iranian crude carriers on Tuesday, while Tehran subsequently claimed its forces had attacked two American vessels and eight oil tankers in the Persian Gulf in retaliation. Iran’s Islamic Revolutionary Guard Corps (IRGC) said the vessels sustained “significant damage,” although the claims have not been independently verified.
The IRGC had earlier issued an “urgent warning” instructing tanker crews around Bahrain and Kuwait to leave their vessels ahead of potential attacks.
Iran also launched ballistic missiles towards US military installations across the Middle East. Jordan’s military said its air defences intercepted 18 of 20 missiles directed towards facilities in the country.
The growing maritime dimension of the conflict is particularly significant for energy markets because of the Strait of Hormuz, one of the world’s most important oil transit corridors.
Washington has imposed restrictions on shipping to and from Iranian ports, while Tehran has tightened controls over vessels passing through the strait. Before the conflict, approximately one-fifth of global oil supplies passed through the strategic waterway.
Concerns over regional production have been compounded by attacks attributed to Yemen’s Houthis against energy infrastructure in southern Saudi Arabia.
Missile and drone strikes on Tuesday reportedly caused temporary shutdowns at energy facilities and triggered a fire at the Jazan refinery. The Saudi Aramco facility has the capacity to process about 400,000 barrels of crude oil per day.
With attacks increasingly affecting tankers, refineries and key shipping routes, traders are factoring a growing geopolitical risk premium into crude prices amid uncertainty over whether the conflict will further restrict global energy supplies.
Short term pain
Long term gain
Not sure for how long?
US strategic oil reserves are severely depleted and China is starting to import again
Two factors which were cushioning world oil prices
Trumps declaration about Venezuelan oil expectations is hogwash as oil executives have confirmed
We are winning the war we have won the war in the same sentence
Trump
Doublespeak dazed and confused
This guy reckons the USA’s “economy is crashing into a 1929 style depression” now
https://halturnerradioshow.com/index.php/component/content/article/30-year-u-s-treasuries-hit-5-361-yield?catid=20&Itemid=101
All brought to you by Israehell… or the dynastic families which set Israehell up.
One Ordo Ab Chaos coming up!
Will the sheeple beg the perpetrators to save them?
The sheeple are inflicted with Stockholm syndrome
Learn who they won’t criticize
Fake Christian Churches are a big part of the problem
And Fox News
All run by the same people
I’ve often thought the Stockholm Syndrome should have been called the London Syndrome. But I guess the Swedes did have the first central bank, so perhaps it’s appropriate.