Oil Prices Edge Higher, Brent Rises 5% Week-on-Week to $115
Oil prices edged higher strongly this week as escalating tensions in the Middle East, attacks on Saudi energy infrastructure, and threats to oil shipments through the Strait of Hormuz heighten concerns about global supply.
International benchmark Brent crude futures for December delivery traded at $114.90 per barrel, up 5.04% from last Friday’s close of $109.86.
US benchmark West Texas Intermediate (WTI) crude futures for December delivery traded at $101.01 per barrel, up around 2% from $99.02 a week earlier.
Oil prices gained support during the week as Yemen’s Houthi group carried out attacks targeting Saudi energy infrastructure, including the Shaybah oil field, raising concerns over the security of regional production facilities and potential supply disruptions.
The rally gained momentum following reports that the US and Israel were preparing possible renewed strikes against Iran after the US midterm elections, with Iranian energy infrastructure reportedly among potential targets.
Tensions intensified after Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had targeted four vessels transferring oil cargoes in the Persian Gulf and warned that continued US encouragement of tanker transits through routes Tehran considers unauthorised could expand the conflict to US military bases in the region.
The developments heightened concerns over the security of oil shipments through the Strait of Hormuz, a critical route for global energy trade.
Meanwhile, Ukrainian drone attacks targeting Russian oil infrastructure added to supply uncertainty, raising concerns over potential disruptions to Russian fuel production and exports.
A larger-than-expected decline in US crude inventories also supported prices. Data from the Energy Information Administration (EIA) showed commercial crude stocks fell by 3.1 million barrels to 412.5 million barrels last week, compared with expectations for a decline of around 100,000 barrels.
Further support came from Libya, where closing a pipeline valve near the Zawiya refinery disrupted crude flows and raised concerns about further production shutdowns and supply losses.
However, reports of diplomatic efforts involving the US and Iran, including a compromise proposal reportedly presented by Qatar and Pakistan, limited gains by raising hopes of a negotiated settlement and the eventual reopening of Hormuz.
Recovering crude exports from Gulf producers, with shipments approaching prewar levels, also eased some supply concerns.
Additionally, US President Donald Trump’s decision to delay further sanctions on Russia to avoid undermining peace negotiations with Ukraine, along with expectations of increased Russian diesel supplies, helped temper pressure on prices upward. Oil Rises as Iran-Backed Houthis, Saudi Arabia Tensions Escalate
