Brent tops $96 as West Asia tensions fuel oil rally
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Global crude oil prices climbed more than 2% on Thursday as Brent crude rose above $96 a barrel amid fears of supply disruptions following Houthi attacks on two Saudi oil tankers in the Red Sea.
Brent crude was up 2.5%, or $2.42, while West Texas Intermediate gained more than 2%, or $1.84, and traded near $88 a barrel.
The Houthi group said it had targeted the Saudi oil tankers Encelia and Layla with missiles and drones, claiming they had violated a blockade imposed by the group.
Earlier, the UK Maritime Trade Operations reported that a commercial vessel had been hit by a projectile off Saudi Arabia’s Red Sea coast near Al Shuqaiq, causing a fire on board, though it did not identify the ship involved.
The reported attacks are being seen as a major escalation, as the Red Sea has become an important export route for Saudi Arabia and a key alternative to the Strait of Hormuz.
Oil prices have already been under pressure from rising geopolitical tensions in West Asia, with Brent gaining sharply this month as traders factor in the risk of wider supply disruption.
Analysts said crude could move back toward the $100-a-barrel level if the conflict deepens further, warning that sustained gains in oil prices could hurt market sentiment in India and add to inflationary pressure.
(Inputs from IANS)