Oil Prices Rise in Global Markets on Fears of Middle East Supply Disruptions

Darwin, October 21: Oil prices rose in global markets on Wednesday as traders grew concerned about potential disruptions to oil supplies in the Middle East, amid risks to shipping in the Red Sea and threats of attacks on Saudi Arabia’s oil infrastructure.

At 6:22 a.m. Bangladesh time on Wednesday (October 21), Brent crude rose 85 cents, or 0.78%, to $109.64 per barrel. U.S. West Texas Intermediate (WTI) crude also gained 76 cents, or 0.78%, to $98.58 per barrel.

The naval forces of Iran’s Islamic Revolutionary Guard Corps said a large oil tanker caught fire after striking a sea mine south of the Strait of Hormuz. Iranian media reported that the vessel had been violating Iran’s regulations. According to data from ship-tracking firm Kpler, at least 18 vessels have reportedly been attacked over the past two weeks.

Meanwhile, Yemen’s Houthi rebels claimed responsibility for attacks on a Saudi Aramco facility in Yanbu, the Shaybah oilfield, and the airports in Riyadh and Abha, Saudi Arabia. The incidents have further heightened concerns about energy supplies from the Middle East.

Oil prices had eased somewhat on Tuesday after Iranian President Masoud Pezeshkian discussed mediation efforts during a meeting with Pakistan’s army chief. However, fears of further attacks across the region have once again pushed prices higher.

Meanwhile, diesel prices in the United States are rising amid a shortage of the fuel. U.S. energy officials said they are working with refineries in various countries around the world to increase production.

Source: Reuters