Oil prices rose on Friday and were on track for a fourth monthly gain. Traders braced for a possible escalation of the US-Iran conflict after the US midterm elections, while an attack on a tanker in the Strait of Hormuz underlined supply risks.
Oil climbed on Friday and was heading for a fourth monthly gain as traders prepared for a potential escalation of the US-Iran conflict after the midterms. An attack on a tanker in the Strait of Hormuz highlighted the supply risks from the war.
WTI and Brent extend monthly gains
US West Texas Intermediate crude futures climbed $1.79, or 1.75%, to $103.79. For the month, WTI was heading for a 15% jump.
Brent crude futures for December, which expire on Friday, were up $2.27, or 1.98%, at $117.15 a barrel as of 0845 GMT. Brent was on course to finish the month 13% higher.
Tanker hit in Hormuz, Houthis target Saudi sites
On Friday, a tanker in the Strait of Hormuz was hit by explosive devices attached by a small boat, the UKMTO said. It was not immediately clear who was behind the attack.
Meanwhile, Yemen's Iranian-backed Houthi militants said on Thursday they had attacked several sites in Saudi Arabia, including the Ras Tanura refinery, the Rabigh refinery and a production facility in Abqaiq owned by Saudi Aramco.
Qatari mediators return to Tehran as UBS sees escalation risk
Qatari mediators returned to Tehran on Friday as part of coordinated efforts to reach a deal between the US and Iran, an official briefed on the talks told Reuters. Even so, UBS commodity analyst Giovanni Staunovo said: "we’re still seeing a higher likelihood of an escalation and supply disruption".
Oil prices could become even more volatile in the next couple of weeks because of Israel's parliamentary election and the US midterm vote, according to a Saxo Bank briefing. Even after the conflict ends, the Danish bank expects crude to trade in a higher range of $70 to $90 a barrel, compared with a pre-war level of $60-$70.
Source: Investing.com
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