Shafaq News
Oil prices extended gains on Wednesday as fears of furthersupply disruptions intensified after U.S. forces struck Iranian militarytargets for the 11th straight night, while oil tankers made U-turns in the RedSea after warnings by Iran-backed Houthi militia.
Brent crude futures rose $1, or 1.1%, to $92.01 a barrel at0330 GMT. U.S. West Texas Intermediate crude climbed 82 cents, or 1.0%, to$85.16.
The gains came after oil settled at a five-week high onTuesday in the wake of U.S. forces striking targets in southern and westernIran, while Iran attacked U.S. facilities in Bahrain, Kuwait and Jordan.
The U.S. military said it began its latest strikes on Iranlate on Tuesday in the United States, or earlyWednesday in Iran. The U.S. attacks came a short while after the Kuwaiti armysaid its air defences were intercepting Iranian drones on Wednesday.
The constant trading of strikes have raised fears of furtherdisruptions to global energy supplies after Yemen's Iran-aligned Houthis openeda new front in the Iran war by threatening to target vessels carrying Saudi oilin the Bab el-Mandeb Strait and announcing a naval blockade of Saudi Arabia.
The Bab el-Mandeb waterway at the southern entrance to theRed Sea has become an increasingly important route for Saudi crude exports astraffic through the Strait of Hormuz has fallen sharply since a ceasefirebetween the United States and Iran collapsedearlier this month.
Three oil tankers loaded with Saudi crude for China andIndia made U-turns in the Red Sea on Tuesday, heading towards the Suez Canalrather than braving the Yemeni coast following a warning from Yemen'sIran-aligned Houthi militia.
"This would force tankers to enter and exit the Red Seavia the Suez Canal, adding significant time and expense to voyages to Asia," said INGcommodity strategists on Wednesday, adding that tensions in the Black Sea alsoadded to supply uncertainty.
The Caspian Pipeline Consortium has stopped receiving oilfrom Kazakhstan after suspending loadings on Monday due to attacks on oiltankers at its Black Seaterminal blamed on Ukrainian drones. Ukraine has not commented on the attacks.
"The longer the suspension drags on, the greater thelikelihood that Kazakhstan will be forced to curb upstream production,"said ING.
Meanwhile, data from the AmericanPetroleum Institute showed that U.S. crude and distillate inventories rose lastweek, while gasoline stockpiles fell, market sources said. The inventory datacomes ahead of official figures from the U.S. Energy Information Administrationon Wednesday.
(Reuters)
Only the headline is edited by Shafaq News.