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Oil rises above $100 as Hormuz and Red Sea disruptions persist
Brent was around $100.3 per barrel, with WTI near $91.7, as multiple shipping and pipeline disruptions added to supply risk and U.S. gasoline again topped $4 per gallon.
Oil prices climbed with Brent trading around $100.3 per barrel and WTI near $91.7 per barrel, extending gains over the week, as key routes remain disrupted, according to OilPrice.
The Strait of Hormuz is described as nearly paralyzed, while the Yemeni Houthis continue to target tankers in the Bab el-Mandeb Strait. In addition, Kazakhstan suspended oil flows via the Caspian Pipeline Consortium system following Ukrainian drone attacks, tightening supply expectations.
OilPrice cited ING commodity analysts saying further escalation in the Persian Gulf and fears of a widening conflict are putting a significant amount of oil supply at risk. The analysts also said the market is likely to move higher without signs of de-escalation, while the main question is when price pressure could push the U.S. toward negotiations.
OilPrice added that AAA data shows U.S. gasoline prices are again above $4 per gallon, which could intensify domestic pressure as midterm elections approach in November. It also noted that Middle East oil production remains at an estimated 7 to 8 million barrels.
Latest closeWTI crude $92.23 ▲6.2%|Brent $100.54 ▲6.9%|Gasoline (RBOB) $3.324 ▼2.7%