Oil prices hit five-month high amid Middle East tensions
Summarised from 2 outlets · Updated 20 Oct, 18:08 · Archive
Crude oil prices reached five-month highs before reversing gains as tensions in the Middle East escalated.
Crude oil prices reached five-month highs on Tuesday before reversing course as Middle East tensions weighed on markets. Brent crude hit over $111 per barrel during the session before falling to around $108 by afternoon, while West Texas Intermediate topped $110 before settling near $103. At least 18 vessels came under fire over two weeks, according to ship tracker Kpler. Iran's Revolutionary Guard Corps said two oil tankers were set ablaze in the strait after hitting mines.
Traders were balancing competing pressures: hopes for diplomatic progress between the US and Iran against ongoing attacks on commercial shipping and Houthi strikes on Saudi oil infrastructure. Analysts attributed the price volatility to concerns about tightening global crude supplies as Middle East export volumes fell. Insurance premiums built into oil prices have risen due to uncertainty, according to analysts quoted by the Wall Street Journal. Deutsche Bank analysts told the same outlet that odds of a diplomatic resolution were low.
Meanwhile, US petrol prices have moved in the opposite direction, with the national average falling to $4.28 per gallon according to AAA, more than a dollar higher than a year earlier but down from recent peaks. Energy Secretary Chris Wright said on Monday that about 1,600 idle sanctioned ships would be allowed to carry legal oil to help ease transportation pressures.
How it is being reported
- Oil prices hit five-month high before reversing gains as Middle East uncertainty persistsCrude oil prices hit a five-month high Tuesday morning before reversing gains, as conflict in the Middle East continued to simmer.New York Post · 20 Oct, 17:56
- U.S. oil surges to top $109, Brent crude at five-month high amid Mideast tensionsOil extended its rally on Tuesday as investors continued to monitor developments in the Middle East.CNBC · 20 Oct, 12:19
In this story: Iran · Saudi Arabia · United States · Strait of Hormuz · Houthi · Iran's Revolutionary Guard Corps · Donald Trump
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