Brent Crude Surpasses $100 as Middle East Conflict Threatens Oil Supply
Oil Prices Surge Amid Escalating Middle East Tensions
Brent and WTI Prices Break Key Thresholds
SINGAPORE, Sept 9 (Reuters) - Benchmark Brent crude oil 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.
Brent crude futures rose $2.15, or 2.2%, to $100.07 a barrel by 0721 GMT, while U.S. West Texas Intermediate crude was up $1.70, or 1.83%, at $94.73 a barrel.
Factors Driving the Price Increase
Impact of U.S.-Iran Conflict
Brent crude prices have risen by a quarter since early last month as hopes fade for a permanent resolution to the six-month-old U.S.-Iran conflict.
Houthi Attacks on Saudi Energy Facilities
This week, attacks by Iran-backed Houthis on Saudi energy facilities set oil installations ablaze, threatening a significant expansion of the conflict.
Threats to Oil Shipments and Key Routes
The Houthi attacks could threaten crude shipments via the Red Sea, which has been a key alternative route to the crucial Strait of Hormuz, where crude flows have been severely curtailed since the February 28 start of the Iran war.
Market Reactions and Forecasts
Bank Forecasts and Analyst Insights
A growing number of banks, including Goldman Sachs, Bank of America and HSBC, have raised their crude price forecasts in recent days.
Oil Flow Data and Production Trends
In the week before a resumption in fighting on August 30, roughly 8 million to 9 million bpd had flowed through Hormuz, double the previous week's volume, according to Rystad Energy's Chief Economist Claudio Galimberti, although more recently it had fallen below 2 million bpd.
While non-OPEC oil producers including the United States, Canada and Guyana have ramped up output, the International Energy Agency said last month it expected global oil supply would fall this year by 4.3 million bpd, or about 4%.
(Reporting by Tony Munroe; Editing by Clarence Fernandez and Louise Heavens)
