Oil Prices Soar Above $100 Amid Ongoing Supply Disruptions
Oil prices surged on Friday, pushing both major benchmarks above $100 a barrel for the first time since mid-May. The increase was driven by concerns over supply disruptions in the Middle East, where attacks along key shipping routes have intensified.
Brent crude futures rose to $108.44 a barrel, while U.S. West Texas Intermediate crude reached $103.17 a barrel. Both benchmarks have risen more than 6% this week, with Brent up nearly 13% on the week ended July 17.
The attacks along key shipping routes have raised fears of prolonged disruptions to supplies. The Iran-aligned Houthis seized control of Yemen's port of Mocha on Thursday, posing a further threat to Red Sea traffic. Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified.
Analysts warn that while physical flows may improve or deteriorate, the market is poised for another wave of supply disruption. 'The next leg in oil will depend less on headlines and more on whether physical flows improve or deteriorate further,' said Priyanka Sachdeva, analyst at Phillip Nova.