NEW YORK: Oil prices rose on Wednesday amid renewed concerns over global supply disruptions after Yemen’s Houthi movement attacked Saudi Aramco’s headquarters and Iran signalled new tactics to target shipping in a bid to keep oil prices elevated.
Brent crude futures gained 87 cents, or 0.82 per cent, to $106.56 a barrel by 1:25pm ET (1725 GMT). US West Texas Intermediate (WTI) crude rose $1.46, or 1.55 per cent, to $95.60 a barrel, reaching a three-week high.
Attacks on vessels transiting the Strait of Hormuz, coupled with strikes involving Saudi Arabia and the Iran-allied Houthis, have heightened market concerns over the security of oil supplies, said Phil Flynn, senior analyst at Price Futures Group.
“We’re seeing a lot of fear trade today,” he said.
Iranian officials declined to disclose details of the new strategy for targeting ships, although one official said Tehran had begun employing different offensive tactics around 10 days earlier.
Meanwhile, Gulf oil flows excluding Iran surged in September to more than 81 per cent of pre-war levels, according to data, led by a recovery in Saudi exports. Iranian oil exports, however, fell to zero amid a US blockade, further intensifying concerns over supply availability and market stability.
By Reuters
