Oil prices rose on Tuesday as concerns over supply disruptions persisted after attacks on Saudi energy infrastructure forced a pipeline linking eastern and western Saudi Arabia to halt operations, casting doubt over efforts to reduce shipping risks in the Gulf.
Brent crude futures rose $1.24, or 1.18%, to $106.93 a barrel, after gaining 1% earlier in the session. US West Texas Intermediate (WTI) crude futures climbed $1.29, or 1.24%, to $102.65 a barrel, following a 1.3% increase in the previous session.
“Oil traders are treating every new attack or strike on infrastructure as an additional risk to supplies, while remaining highly sensitive to any indication that flows through the East-West pipeline or the Strait of Hormuz could return to normal,” said Tim Waterer, chief market analyst at KCM Trade.
The number of cargo vessels transiting the Strait of Hormuz fell to fewer than 10 trips a day at the start of the week, down from an average of 14 over the previous 10 days. The decline has raised concerns over a route that typically carried about one-fifth of global oil supplies before the US-Israeli war on Iran began on February 28.
Source: Reuters
