Oil gains as Middle East attacks cloud Gulf supply recovery
Brent traded at US$106.54 a barrel as tanker attacks threatened recovering supply through the Strait of Hormuz.
Oil prices moved higher on Oct 14 amid renewed Middle East attacks and uncertainty about recovering Persian Gulf shipments. At 8.24am in Singapore, December Brent futures gained 0.8% to US$106.54 a barrel, while November West Texas Intermediate (WTI) rose 0.8% to US$94.92.
Increased Iranian attacks on tankers passing through the Strait of Hormuz threatened Gulf supply that had recovered to near prewar levels. The US said it had helped move crude totalling more than 19 million barrels through the strait. Attacks on ships have also led more supertankers to avoid the Persian Gulf.
Saudi Arabia intercepted further missile and drone attacks by Yemen’s Houthis. Saudi Aramco’s headquarters in the kingdom’s east was hit during the latest strikes, while fighting with the Iran-backed group continued.
Brent’s gains this year have exceeded 70% amid the US-Iran war. Morgan Stanley analysts, including Martijn Rats, said exports were continuing despite heightened uncertainty and increased attacks on Saudi infrastructure. The bank lifted its Dated Brent forecast by US$5 a barrel for both the current quarter and the following quarter.
Saudi Arabia separately told Opec that crude output had risen by a third. Production recovered from a low not seen in more than three decades but remained substantially below prewar levels.
