Oil rises to $110 per barrel and the dollar declines
Oil prices rose on Wednesday amid concerns over energy supplies from the Middle East, with escalating attacks on ships in the Red Sea and the Strait of Hormuz and threats to oil infrastructure in Saudi Arabia. Brent crude rose $1.21 to $110 per barrel, and West Texas Intermediate rose to $99. Data from Kepler showed 18 attacks on ships in two weeks, with attacks extending to the Gulf of Oman. US crude oil inventories also fell by 4.9 million barrels.
Oil prices rose on Wednesday amid concerns over energy supplies from the Middle East, as escalating risks threaten shipping traffic through the Red Sea and the Strait of Hormuz, along with threats to oil infrastructure in Saudi Arabia. Brent crude futures rose by $1.21 to reach $110 per barrel, while US West Texas Intermediate crude rose by more than $1 to $99 per barrel. This increase came amid reports of escalating attacks on ships in the region. Iranian media quoted the navy of Iran's Revolutionary Guard on Tuesday as saying that a supertanker caught fire after hitting a naval mine south of the Strait of Hormuz, allegedly for violating Iranian rules. Ship-tracking firm Kepler reported in a note that at least 18 attacks on ships were recorded in two weeks. Analysts at the London Stock Exchange Group noted that attacks have extended to areas outside the Strait of Hormuz, reaching the Gulf of Oman, increasing risks to oil loading and transport operations in the region. Oil prices had fallen in the previous session, following the Iranian president's discussion of mediation efforts during a meeting with the Pakistani army chief in Tehran. In a related context, data from informed sources showed a decline in US crude oil inventories by 4.9 million barrels over the past week, while gasoline inventories fell by about 2 million barrels and distillate inventories fell by about 1 million barrels.