Energy market reacts to regional escalation
Crude oil prices on the global market have risen to their highest levels in five months. This trend is driven by new attacks by the Houthis targeting Saudi Arabia's energy infrastructure, as well as reports of ship shelling in the waters of the Persian Gulf.
Key indicators and records
According to Trading Economics, as of 12:25 Kyiv time, the price of Brent crude reached $111.22 per barrel. This is the highest figure since 18 May. US WTI crude prices rose to $100.45 per barrel, whereas the maximum value for this grade in September was $105.83.
Scale of damage and attack targets
Over two weeks, at least 18 ships were damaged as a result of shelling in the Strait of Hormuz. This situation sustains the so-called "risk premium" in oil pricing.
On Monday, Yemeni Houthis announced a series of strikes on energy, aviation, and military facilities in Saudi Arabia. Among the specified targets were:
- a Saudi Aramco state oil company facility in Yanbu, which serves as the country's main export port amid the Hormuz blockade;
- the Shaybah oil field;
- King Khalid International Airport in Riyadh;
- Abha Airport.
Casualties and regional consequences
As a result of a Houthi attack on a security forces training camp in Shabwa province, which is under the control of Yemen's internationally recognised government, 58 people were killed and over 200 were injured.
The resumption of hostilities heightens concerns about stability in the region and highlights the persistent risks to energy supply. This contributes to keeping oil prices above $100 per barrel.
Market analysis
Reuters adds that the easing of sanctions on Russian diesel fuel has not produced the expected effect of curbing energy prices.
«Хоча перспектива додаткових вантажів російського дизелю теоретично дає певне полегшення, трейдери значно більше зосереджені на ризиках подальшого руйнування енергетичної інфраструктури в Перській затоці» (Although the prospect of additional Russian diesel cargoes theoretically provides some relief, traders are far more focused on the risks of further destruction of energy infrastructure in the Persian Gulf), said Tim Waterer, chief analyst at KCM Trade.
Comments
No comments yet. Be the first!