Oil rises on risks to Middle East supplies — Channel NewsAsia
Oil prices rose on Wednesday amid concerns over possible supply disruptions from the Middle East, including threats to Saudi Arabia's oil infrastructure and shipping risks in the Red Sea. Brent futures as of 00:22 GMT gained 85 cents, or 0.78%, to $109.64 per barrel. U.S. WTI crude rose by 76 cents, or 0.78%, to $98.58 per barrel, Channel NewsAsia reports.
Risks to maritime shipping
According to Iranian media, the naval forces of the Islamic Revolutionary Guard Corps said that a supertanker caught fire after striking a sea mine south of the Strait of Hormuz. They claimed that the vessel had violated Iranian rules.
Shipping tracker Kpler reported on Monday at least 18 attacks on vessels over two weeks. LSEG analysts noted that attacks on tankers had spread beyond the Strait of Hormuz. In their assessment, Iran targeted vessels even in the Gulf of Oman area, posing a threat to oil shipments outside the Arabian Gulf as well as ship-to-ship transfers.
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Attacks and price fluctuations
Yemen's Houthis on Monday claimed responsibility for attacks on a Saudi Aramco facility in Yanbu, the Shaybah oil field, and the airports of Riyadh and Abha. The death toll from the Houthi attack on Yemen's government forces that day rose to 73 amid intensified fighting.
The previous day, prices had declined after Iran's president discussed mediation efforts at a meeting with Pakistan's army chief in Tehran. On Tuesday, Brent ended trading down 76 cents, or 0.69%, at $108.79 per barrel, although it had earlier reached a five-month high of $111.99. The November WTI contract, which expired on Tuesday, fell by $1.87, or 1.8%, to $101.79.
Iranian Foreign Minister Abbas Araghchi said that Tehran had received no response from Saudi Arabia or Yemen's Houthis to its proposal to help organize peace talks. Meanwhile, according to estimates by eight analysts surveyed by Reuters, U.S. crude oil inventories may have fallen by about 800,000 barrels in the week to October 16.
