Brent Crude Hits Six-Week Highs as Middle East Conflict Intensifies
The price of Brent crude oil has surged to six-week highs after breaching $100 per barrel on Wednesday, driven by intensifying conflict in the Middle East and concerns about oil flows. The price of Brent crude futures rose by 2.83% to $100.69 a barrel, while US West Texas Intermediate crude was up 2.34% at $95.21 a barrel.
The conflict has been escalating since February, with Iran-backed Houthis attacking Saudi energy facilities and threatening to disrupt oil shipments via the Red Sea. Market participants are pricing in a more prolonged conflict and the risk of disruptions to oil flows from the Middle East, said Hamad Hussain, senior climate and commodities economist at Capital Economics.
Analysts have raised their crude price forecasts in recent days, with Goldman Sachs, Bank of America, and HSBC among those predicting higher prices. The physical crude oil market has been above $100 per barrel since September 3, according to LSEG data, while European diesel futures were trading at around $199 per barrel on Wednesday.