Brent crude oil prices rose above $100 a barrel on Wednesday for the first time since July 24, as escalating conflict in the Middle East raised concerns about disruptions to oil supplies.
Brent futures gained $2.15, or 2.2%, to $100.07 a barrel by 0721 GMT, while U.S. West Texas Intermediate crude rose $1.70, or 1.83%, to $94.73.
Brent has climbed about 25% since early August as hopes for a lasting end to the six month old U.S. Iran conflict have faded.
Recent attacks by Iran backed Houthi forces on Saudi energy facilities have further heightened concerns, potentially threatening oil shipments through the Red Sea. Supplies through the Strait of Hormuz, a major global oil route, have already fallen sharply since the conflict began.
Several major banks, including Goldman Sachs, Bank of America and HSBC, have raised their oil price forecasts in recent days.
Despite increased production from countries including the United States, Canada and Guyana, the International Energy Agency expects global oil supply to decline by about 4.3 million barrels per day this year.
Leave a comment