Oil prices rise above $100 a barrel for first time since July as Iran war escalates
Iran-backed Houthi attacks on Saudi energy facilities and a tighter Strait of Hormuz supply route pushed Brent above $100, banks raised price forecasts.
- Benchmark Brent crude futures rose past $100 a barrel on Wednesday, breaching the symbolic barrier for the first time since July 24 as intensifying conflict in the Middle East fuelled growing concern about oil flows from the region.
- Hopes for a permanent resolution to the six-month-old United States-Iran conflict have faded since early last month, driving Brent prices up by a quarter as Iran-backed Houthis attacked Saudi energy facilities this week.
- Data from Rystad Energy's Chief Economist Claudio Galimberti shows oil flows through the Strait of Hormuz fell below 2 million bpd recently, down from roughly 8 million to 9 million bpd before fighting resumed on August 30.
- Goldman Sachs, Bank of America and HSBC have raised their crude price forecasts in recent days, reflecting market concerns over tightening global supply amid the escalating regional conflict.
- The International Energy Agency expects global oil supply to fall by 4.3 million bpd, or about 4%, this year, while The Houthi attacks threaten Red Sea shipments, a key alternative to the Strait of Hormuz.
250 Articles
250 Articles
The oil price has risen to more than $100 per barrel in the morning because of the further military escalation on the Persian Gulf. This is because of the concern about supply interruptions from the Middle East.
Brent crude rises above $100 as Mideast conflict escalates
Benchmark Brent crude oil futures rose past US$100 a barrel on Wednesday, breaching the symbolic barrier for the first time since July 24 as intensifying conflict in the Middle East fueled growing concern about oil flows from the region.
The Brent oil barrel reached $100 on Wednesday for the first time since the end of July, after new American and Iranian strikes targeting oil tankers in the Middle East.
Prices are higher than 2% than peaks since July in the midst of new clashes in the Middle East. Goldman Sachs and Bank of America corrected upwards their projections for the barrel.
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