WTI tops $101 for first time in a month as supply fears mount

A small-scale crude oil production facility operates on the outskirts of Vaudoy-en-Brie in northwestern France on March 18 (local time). [Reuters]
A small-scale crude oil production facility operates on the outskirts of Vaudoy-en-Brie in northwestern France on March 18 (local time). [Reuters]

International oil prices surged Friday as geopolitical risks in the Middle East and Ukraine escalated simultaneously, stoking fears of supply disruptions.

Brent crude for December delivery closed at $109.86 per barrel on the London ICE Futures Exchange on Friday (local time), up 3.72 percent from the previous session — its highest closing price since May 19, a span of five months. During trading, the contract briefly topped $110.

West Texas Intermediate for November delivery settled at $101.41 per barrel on the New York Mercantile Exchange, a gain of 3.51 percent. The benchmark has now risen for seven consecutive trading sessions, reaching its highest level since Sept. 17.

The rally reflects growing concern that geopolitical tensions in the Middle East and Ukraine could disrupt crude supply.

Iran has moved to restrict oil exports through the Strait of Hormuz, and at least nine vessels have come under attack since Sunday. According to shipping data firm Kpler, exports through the strait in the week of Oct. 8–14 fell to 9.4 million barrels per day — roughly 70 percent of the pre-war average before the US-Iran conflict.

Yemen's Iran-backed Houthi rebels have continued striking Saudi Arabia. On Friday, the group again targeted Yanbu, a key port city on Saudi Arabia's western coast that is home to a concentration of petrochemical facilities.

The exchange of strikes on energy infrastructure between Russia and Ukraine has also intensified. After Russia launched concentrated airstrikes on major energy facilities in Kyiv — including a combined heat and power plant — Ukraine concluded that the energy truce brokered by US President Donald Trump had lost its effectiveness and resumed attacks on Russian oil refineries.

In the United States, Hurricane Isaias has disrupted crude production along the Gulf of Mexico coast. Commercial crude inventories fell by more than 8 million barrels.


spa@heraldcorp.com