Oil prices surge amid global security setbacks; Brent crude nears $110

[Financial News] A series of adverse developments threatening crude oil supplies in the Middle East and Ukraine sent international oil prices sharply higher. Brent crude came close to $110 a barrel, reaching its highest level in about five months, while West Texas Intermediate (WTI) also rose for a seventh consecutive trading session.
On the 17th, according to the ICE Futures Exchange in London, December-delivery Brent crude settled at $109.86 a barrel on the 16th (local time), up 3.72% from the previous session. It was the highest closing price since May 19, and prices also topped $110 during the session.
On the New York Mercantile Exchange, November-delivery WTI also settled up 3.51% at $101.41 a barrel. That was its highest level since September 17.
Supply uncertainty surrounding the Strait of Hormuz is seen as a major factor behind the rise in oil prices. Iran has tightened controls on crude oil exports passing through the strait, and at least nine vessels have reportedly been attacked since the 11th.
According to maritime data provider Kpler, crude oil exports through the Strait of Hormuz fell to 9.4 million barrels a day from the 8th to the 14th. That was about 70% of the average volume before the war between the United States and Iran began. Yemen’s Iran-aligned Houthi rebels, Ansar Allah, also continued attacks that day targeting Yanbu, a port city in western Saudi Arabia.
Fears of damage to energy facilities due to the war in Ukraine also pushed oil prices higher. After Russia recently focused attacks on energy infrastructure, including combined heat and power plants in Kryvyi Rih, Ukraine’s capital, Ukraine resumed strikes on Russian oil refineries, judging that the “energy ceasefire” led by U.S. President Donald Trump had effectively failed.
Supply conditions in the United States are also deteriorating. Disruptions to crude oil production along the Gulf Coast due to Hurricane Isaias led U.S. commercial crude oil inventories to fall by at least 8 million barrels.

[email protected] Kim Hyun-ji Reporter