Brent Jumps 2% to $106.76 as Saudi, Hormuz Attacks Eclipse 300,000-Ton Russian Diesel Boost
Updated
Updated · Yahoo Finance · Oct 12
Brent Jumps 2% to $106.76 as Saudi, Hormuz Attacks Eclipse 300,000-Ton Russian Diesel Boost
3 articles · Updated · Yahoo Finance · Oct 12
Summary
$106.76 Brent and $93.69 WTI marked near two-week highs after oil reversed earlier losses, with traders refocusing on fresh security threats in Saudi Arabia and the Strait of Hormuz.
13 people were killed and more than 300 wounded in a Saturday strike on Riyadh airport claimed by the Houthis, followed by further attacks on Sunday and new tanker incidents near Sohar and in Hormuz.
Those disruptions threatened September's recovery in Middle East crude exports, with analysts saying the sense of normal Hormuz traffic was shattered and defense priorities across Saudi infrastructure are tightening.
300,000 metric tons of additional Russian diesel promised by Trump helped push ICE gasoil down 2.3%, but analysts said the supply increase should emerge only gradually and is unlikely to cap crude prices soon.
Goldman Sachs raised its December Brent forecast to $90 from $85, estimating a geopolitical risk premium of just over $20 a barrel.