Brent hits five-month high above $111 as Houthi claims of Saudi strikes lift risk premium
Oil rose on Tuesday, with Brent crude touching $111.05 a barrel, its highest since May, Reuters reported. Traders added a risk premium after Yemen's Houthis claimed attacks on Saudi energy, airport and military targets.
What moved prices
The Houthis said on Monday they had attacked several Saudi targets. These included an Aramco site in Yanbu, the Shaybah oilfield, Riyadh's King Khalid International Airport and Abha airport. Reuters said Saudi authorities did not immediately confirm the claims and it could not verify them.
This suggests the market is pricing in a significant risk premium, given the situation's volatility.
ING added that the risk premium would likely erode slowly if flows continue uninhibited, but said there were no signs of that yet.
Prices at a glance
| Benchmark | Tuesday high | Last (0810 GMT) | Note |
|---|---|---|---|
| Brent | $111.05 | $110.80 | Highest since May |
| WTI | $104.94 | $104.80 | Highest since September |
Source: Reuters.
The National said Brent hit $110 for the first time since May on Friday, when WTI also topped $100 for the first time in a month.
Shipping under strain
Kpler said at least 18 vessels had been reported attacked in two weeks. Gulf producers have moved tanker transfers as far as India's coast and cut prices to keep crude flowing to Asia, The National reported.
Iran's IRGC Navy said on Tuesday that two oil tankers caught fire after hitting mines south of the Strait of Hormuz on Monday night. It called them "violators" using an illegal route. It did not name the ships or report casualties, Iran International reported.
US Energy Secretary Chris Wright said on Monday that sanctioned tankers could begin a process to ship crude legitimately. Kpler said that would do little to ease record freight rates.
Why it matters beyond oil
