Brent Crude Remains Near Five-Month High Amid Middle East Tensions

PUKMEDIA

Oil field.

Oil prices rose on Tuesday, with Brent crude trading near a five-month high as traders factored in a geopolitical risk premium following Houthi attacks on Saudi infrastructure and reports of vessels being targeted in the Gulf.

According to Reuters, Brent crude futures gained 55 cents, or 0.50 per cent, to reach $110.10 a barrel by 03:19 GMT. Prices had climbed to $110.70 in the previous session, their highest level since 20 May.

US West Texas Intermediate (WTI) crude futures for November delivery, which expire on Tuesday, rose 0.24 per cent to $103.91 a barrel. The more actively traded December contract increased by 39 cents, or 0.40 per cent, to $98.93.

Ship-tracking firm Kpler said in a note on Monday that at least 18 vessels had reportedly been attacked over the previous two weeks, keeping the geopolitical risk premium in oil prices elevated.

The Houthis said on Monday they had launched several attacks targeting Saudi energy facilities, airports and military sites, including an Aramco facility in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh and Abha airport.

Separately, a Houthi attack on a training camp for government security forces in Yemen’s Shabwa province killed dozens of people and injured more than 200, according to reports.

The renewed attacks have heightened concerns over regional stability and the security of energy supplies, helping keep oil prices above $100 a barrel.

Meanwhile, uncertainty remains over US policy towards Russian energy. An executive order signed by US President Donald Trump on Friday waived key Russia-related sanctions and tariffs, including duties on goods and penalties linked to purchases of Russian energy.

However, Trump said on Saturday that he had yet to announce a final decision on the matter. US Secretary of State Marco Rubio also said officials needed more time to assess the situation.

Russia’s crude oil production rose by 65,000 barrels per day in September to 8.43 million barrels per day, but remained approximately 870,000 barrels per day below the level recorded a year earlier, the International Energy Agency said last week.



PUKMEDIA