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Brent breaks above $100 as Middle East supply risks intensify
Brent rose nearly 6% on Thursday, with the market also citing the Red Sea closure that affects an estimated 25% of global oil supply.
Brent crude jumped above the psychological $100 per barrel level on Thursday, reaching levels last traded in late May, as renewed Middle East tensions raised uncertainty around oil supply, Action Forex reported.
The latest flare-up followed Yemen’s Houthis hitting two Saudi oil tankers in the Bab el-Mandeb strait, and the closure of the Red Sea added to existing disruptions tied to the Strait of Hormuz, the outlet said.
Action Forex pointed to the Red Sea being an alternative Saudi shipping route, noting the closure in combination with other constraints can affect about 25% of global oil supply. It also said Brent was up nearly 6% for the day, breaking above a technical level around $98.02 and challenging $100 resistance.
Looking ahead, the analysis said a sustained move above $100 is likely if the on-the-ground situation persists or deteriorates, with upside targets flagged at $104.61 and $110 based on Fibonacci extensions and round-figure levels.
Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%