Brent climbs above $112, its highest since May, as Houthi strikes hit Saudi Arabia
Brent crude rose more than 3% to $112.17 a barrel on Thursday morning, its highest since 18 May, Reuters reported. Traders reacted to more Houthi attacks in Saudi Arabia and a report that the US and Israel have plans for new strikes on Iran.
What pushed prices up
The US State Department ordered non-emergency staff and their families to leave Saudi Arabia, citing rising Houthi attacks on civilian targets.
Iran's Islamic Revolutionary Guard Corps navy said four vessels it accused of illegal oil transfers in the northern Gulf were hit at the same time and caught fire. It said three more vessels hit mines west of the Strait of Hormuz, Reuters reported.
In Libya, a valve was shut on a pipeline running from the Hamada and Tahara oilfields to Zawiya port. The head of the National Oil Corporation told Reuters this had cut output at both fields.
No de-escalation is anticipated until the US midterm elections, which should keep oil prices elevated.
The numbers
| Benchmark | Thursday price | Change | Source |
|---|---|---|---|
| Brent | $112.17 | +3.08% | Reuters, 08:18 GMT |
| WTI | $99.83 | +2.76% | Reuters, 08:18 GMT |
| Brent (later snapshot) | $111.74 | +2.68% | CNBC, 6:30 a.m. ET |
| WTI (later snapshot) | $99.30 | +2.21% | CNBC, 6:30 a.m. ET |
Supply is flowing, but risk is rising
Morgan Stanley estimated in a note that Middle East crude exports were about 17 million barrels a day last week, Reuters said. PVM's Varga said those higher exports were "more than countered" by attacks on ships in the Strait of Hormuz and on Saudi oil infrastructure.
Reuters said prices have surged on diesel shortages caused by the wars in Iran and Ukraine. The Trump administration is offering to lend up to nearly a third of the 1-million-barrel US emergency heating oil reserve, Reuters reported.
