The price of North Sea Brent crude oil reached $105.12 per barrel at 4:29 PM GMT, an increase of $2.04 or 2.0%. This price increase occurred due to the Houthi missile attack on Saudi Arabia and concerns about oil supply disruptions in recent days.
Oil Market Analysis
Meanwhile, U.S. West Texas Intermediate crude oil also increased by $1.99 per barrel, or 2.2%, trading at $94.15 per barrel. Such price changes have affected the oil market and heightened concerns about the impact of political and military events on oil supply.
Read more: Brent oil price above $102 amid stalled negotiations with Iran
Sources close to the negotiations between Iran and the U.S. in New York are exploring a phased approach to reduce tensions in the Middle East. These negotiations could significantly impact the oil market and provide an opportunity to ease tensions in the region.
Missile Attacks and Impact on Oil Supply
The Saudi-led coalition in Yemen announced that it intercepted six ballistic missiles fired by the Houthis on Thursday and thwarted attacks on the southern province of Taif and the Yanbu area along the Red Sea. These attacks and concerns about oil supply disruptions have led to rising prices.
Saudi Arabia is increasing the volume of crude oil transfers via the East-West pipeline to send to the Yanbu export terminal on the Red Sea. However, according to industry sources and shipping data, loading of crude oil by tankers has not yet resumed. Satellite images also indicate ongoing disruptions in this regard.
With unprecedented increases in diesel prices in recent weeks due to supply disruptions in Russia and the Middle East, the European Union and the U.S. are exploring solutions to address this situation. Proposed measures by Washington to ban diesel exports have raised significant concerns in the market.
Analysts and market observers have warned that a U.S. ban on diesel exports will have little impact on reducing high energy prices and may exacerbate global supply issues. This situation could further disrupt the economic landscape and contribute to rising prices.
In this context, U.S. Energy Secretary Chris Wright has rejected any ban on diesel exports. However, given the rising prices and concerns about economic impacts, this issue remains a focal point of attention.
Read more: Technical disruption at Abadan refinery emitted smoke · Latest status of Brent crude oil and West Texas prices on October 24, 2023
