Brent crude oil prices for immediate delivery have increased to $116.36 per barrel, indicating a 1.29% rise. This price increase comes as Houthi attacks on Saudi Arabian facilities and a tanker in the Strait of Hormuz have impacted concerns regarding oil supply.
Houthi Attacks and Impact on Shipping
The United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker was attacked in the Strait of Hormuz on Friday. The tanker was targeted with explosives attached to a small boat, although the perpetrators of the attack were not immediately identified. This incident raises concerns about shipping in this strait, which is considered a key route for oil and fuel exports.
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Meanwhile, the Houthis announced on Thursday that they had attacked several facilities in Saudi Arabia, including the Ras Tanura and Abqaiq refineries. These attacks, along with the response from the Saudi-led coalition, which announced it intercepted and destroyed a cruise missile, exacerbate the region's unstable situation.
Market Analysis and Forecasts
Saul Kavonic, Head of Energy Research at MST Markey, noted that ongoing military operations around the Strait of Hormuz and the lack of a suitable diplomatic route keep oil prices elevated. The potential for escalation in conflicts in the coming weeks has also added to these concerns. In this context, ExxonMobil and Chevron have refrained from participating in the oil exhibition in the United Arab Emirates due to security concerns.
Alongside these developments, West Texas Intermediate crude oil prices for December delivery also rose by 1.44% to $103.47 per barrel. Both oil benchmarks are on track to record their fourth consecutive monthly increase. Recent assessments indicate that Brent oil prices have increased by about 11% monthly, while U.S. crude oil has risen by 14%.
These developments come as gold prices have also come under pressure, falling below $4000 per ounce. Increasing expectations for interest rate hikes in the United States due to ongoing inflationary pressures have impacted gold's appeal. Analysts believe that sustained high oil levels and U.S. inflation data will increase pressure on gold.
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