Brent crude oil price climbed to $110 a barrel on Friday for the first time since May, driven by anxieties over potential global oil supply disruptions stemming from escalating Middle East tensions.
According to Reuters, the international benchmark ultimately settled at $109.86 per barrel, reflecting a 3.7% gain and achieving its highest closing level since May 19.
Simultaneously, U.S. West Texas Intermediate (WTI) crude advanced 3.5%, settling at $101.41 per barrel to reach its strongest position since September 17.
These upward price movements followed reports of mounting shipping disruptions in the Strait of Hormuz and threats of potential attacks targeting Saudi energy facilities.
Energy consulting firm Energy Aspects noted that recent rumors concerning attacks on Saudi energy facilities have reignited an upward surge in global oil prices.
Energy Aspects said, “Israeli reports suggest Iran may be preparing a pre-emptive strike following unusual military movements detected by Western intelligence. Although unverified, these developments reinforce our view that persistent escalation risks will keep flat prices supported.”
Furthermore, Reuters reported that a Saudi-led coalition announced the interception and destruction of a ballistic missile targeting Yanbu, a strategic Red Sea port allowing Saudi Arabia to export petroleum without navigating the Strait of Hormuz.
Meanwhile, surging global crude prices have driven up domestic petrol costs in Nigeria.
On October 8, the Federal Government unveiled intervention measures to stabilize prices, including a 30-day fuel discount at NNPC retail outlets and a cap on petrol landing costs at ₦1,350 per liter.
Backstory…
The latest surge in oil prices comes amid an escalating Middle East tensions that has raised concerns about the security of global energy supplies.
The pressure intensified in October as attacks on tankers in the Gulf and near Oman increased, while oil flows through the Strait of Hormuz weakened after briefly recovering in late September.
Concerns have also extended to Saudi Arabia, a major oil producer, following reports of attacks targeting energy facilities and infrastructure.
On October 16, Brent crude reached $109.86 per barrel, its highest level since May 19, as traders assessed the risk of further disruptions in the Middle East and uncertainty over Russian fuel supplies following Ukrainian attacks on Russian energy infrastructure.
