Brent rises to $110.10 amid Middle East risks — The Express Tribune

Brent oil futures rose by 55 cents, or 0.5%, to $110.10 per barrel on Tuesday amid geopolitical risks linked to statements by Yemen’s Houthis about attacks on facilities in Saudi Arabia and reports of attacks on vessels in the gulf. The previous day, quotations had climbed to $110.70, the highest level since May 20.

Price dynamics

The November contract for US West Texas Intermediate crude, which expires on Tuesday, rose by 0.24% to $103.91 per barrel. The more actively traded December WTI contract gained 39 cents, or 0.4%, to $98.93.

As The Express Tribune reports, ING analysts believe that prices are supported by a significant geopolitical risk premium. In their view, if oil supplies continue without disruption, this premium will gradually decline, but there are no signs of this so far.

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Statements about attacks

The Houthis said on Monday that they had carried out several attacks on energy, airport and military targets in Saudi Arabia, including an Aramco facility in Yanbu, the Shaybah oil field, King Khalid International Airport in Riyadh and Abha Airport. Saudi authorities did not immediately confirm these statements, and Reuters was unable to independently verify them.

According to vessel-tracking service Kpler, reports of at least 18 attacks on vessels have been received over two weeks, supporting the risk premium in oil prices. Also on Monday, a Houthi attack on a government security forces training camp in Yemen’s Shabwah province killed 58 people and injured more than 200 others.

In the United States, crude oil and petroleum product inventories may have declined last week, according to a preliminary Reuters poll.