Oil prices rose on Tuesday, with Brent crude hovering near a five-month high as traders factored in a geopolitical risk premium following Houthi attacks on Saudi infrastructure and reports of attacks on ships in the Gulf.
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Brent crude futures rose 55 cents, or 0.50%, to $110.10 per barrel by 03:19 GMT, after climbing to $110.70 in the previous session, their highest level since May 20.
US West Texas Intermediate (WTI) crude futures for November delivery, which expire on Tuesday, rose 0.24% to $103.91 per barrel. The more actively traded December contract gained 39 cents, or 0.40%, to $98.93.
“Oil prices remain well supported ... This suggests that the market is pricing in a significant risk premium given the volatility of the situation,” ING analysts said in a note on Tuesday.
“However, if flows continue uninterrupted despite the geopolitical conditions, the risk premium is likely to gradually diminish. Clearly, there are no signs of that so far,” they added.
Ship-tracking firm Kpler said in a note on Monday that reports indicated at least 18 vessels had come under attack over a two-week period, keeping the risk premium in place.
Source: Al-Ghad
