Oil Prices Soar as Middle East Strikes Spark Supply Worries
Oil prices continued their upward trend on Wednesday, reaching near-record levels as fresh Middle East strikes heightened worries about supply disruptions. Brent crude futures rose 1.4 percent to $99.33 a barrel by 05:12 a.m. Saudi time, while US West Texas Intermediate crude was at $94.34 a barrel, up 1.4 percent.
The price of Brent crude has jumped by a quarter since early August as hopes for a permanent resolution to the six-month-old war faded and fighting flared again. The latest attacks threaten to deepen disruptions to Middle East oil supplies, already strained by strikes on regional energy infrastructure and key shipping lanes.
Analysts warn that sustained attacks on Saudi Arabia could complicate efforts to keep crude flowing to global markets. ING analysts said in a note, 'Recent developments only reinforce the view that we are still some way from a restart in (peace) talks.' The market is likely to continue pricing in a sizeable risk premium.