Crude Surpasses $110 Amid Ongoing Supply Concerns in the Middle East
Brent crude futures increased $1.61, or 1.5%, to $110.40 a barrel by 0630 GMT. U.S. West Texas Intermediate crude, or WTI, climbed $1.45, or 1.5 percent, to $99.27 a barrel. Prices declined in the previous session. Brent touched a five-month high before retreating on Friday after Iran’s president discussed mediation attempts in Tehran with Pakistan’s army chief.
Suvro Sarkar, head of energy research at DBS, said: “Oil prices have been on a bit of a roller coaster ride over the last couple of sessions.” We think this is a combination of profit taking and optimistic hopes of a Qatar- or Pakistan-brokered deal, offset by the realisation that any deal is still very far away and compounded further by inventory data from the American Petroleum Institute (API), which shows drawdowns continuing in the US for both crude and products.”
Iran’s army leader told Pakistan’s army chief it would not engage with Washington unless its demands were met, Iranian media source Nournews said Tuesday, adding that a Qatari delegation had arrived in Tehran. No official confirmation of the reports.
Challenges to maritime security are rising. Shiptracker Kpler said at least 18 vessel attacks were recorded over the past two weeks, while LSEG analysts warned Iran was targeting tankers well beyond the Strait of Hormuz, reaching into the Gulf of Oman and jeopardizing Gulf crude loadings and the ship-to-ship transfers supporting regional loadings.
On Monday, the Houthis claimed responsibility for strikes in Saudi Arabia on a Saudi Aramco complex in Yanbu, Shaybah oilfield and Riyadh’s and Abha’s airports.
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