The price of Brent crude oil has currently reached $105.65 per barrel and is on track for a weekly increase. This price rise is linked to concerns about the security of oil supply from the Middle East. These concerns persist despite reports of a potential agreement between the United States and Iran, as well as estimates regarding oil flows from the Strait of Hormuz.
Impact of Houthi Attacks on Oil Supply
The price of Brent oil has increased from around $102 on Monday. Meanwhile, West Texas Intermediate (WTI) oil fell to $93.11 per barrel by the end of the week. These fluctuations stem from Houthi attacks from Yemen on Saudi Arabia. This group announced on Thursday that it had launched a series of missiles and drones towards Saudi targets, including the port of Yanbu in the Red Sea, which is known as the main oil export terminal of Saudi Arabia.
Read more: Saudi Arabia Sold 100 Million Barrels of Crude Oil to Asia
Impact of US-Iran Negotiations
At the same time, reports indicate negotiations between the United States and Iran regarding a ceasefire, in which Iran is expected to reopen the Strait of Hormuz and the United States will lift its maritime blockade. Iranian President, Masoud Pezeshkian, stated on Thursday: "It is the US that must choose whether it wants to end this situation or not." According to oil market analysts, prices are likely to remain above $100 per barrel.
According to Jane Guo, senior oil market analyst at Sparta Commodities, "With no clear solution in sight, the gap in global oil inventories is widening." Additionally, senior market analyst at KCM Trade, Tim Waterer, stated: "Diplomatic efforts on the sidelines of UN meetings create some balances, but as long as there is no clear evidence of de-escalation, the tendency for price increases will continue."
Read more: Explosion at Unit 70 of Abadan Oil Refinery Leaves Three Injured · Technical Failure at Production Unit of Abadan Refinery
