Shafaq News
Oil prices hit their highest innearly two months on Thursday, rising for a fifth day after Yemen's Houthissaid they struck two Saudi oil tankers, widening disruption to global oilshipping through both the Red Sea and the Strait of Hormuz.
Brent crude futures were up by$5.83, or 6.2%, at $99.90 a barrel by 1310 GMT after reaching $100 a barrel forthe first time since late May.
U.S. West Texas Intermediate cruderose $4.41, or 5.08%, to $91.24, exceeding $90 a barrel for the first timesince June 11.
"The immediate outlook forcrude oil remains supportive as markets price a worrying probability of supplyinterruptions in a second chokepoint," said Pepperstone researchstrategist Ahmad Assiri.
Besides the renewed conflict overcontrol of the Strait of Hormuz, Yemen's Houthis have opened a new front bytargeting vessels carrying Saudi oil in the Bab el-Mandeb strait after statingthey would impose a naval blockade on shipments from Saudi Arabia.
Houthi militia attacked two SaudiArabian oil tankers in a military operation, the group said on Thursday, with aSaudi news agency later confirming one of the two vessels was ablaze after anassault while sailing in the Red Sea.
Goldman Sachs said Brent mightexceed $120 a barrel in the fourth quarter and average $100 next year if theStrait of Hormuz remains disrupted through 2027, with further upside if the Babel-Mandeb strait and Suez Canal also suffer persistent disruption.
Iran's Revolutionary Guards said anoil tanker caught fire after an explosion while attempting to follow a minedroute in the southern area of the Strait of Hormuz near the coast of Oman andthat two others had turned back.
The Guards said the strait was undertheir control and "completely closed" while U.S. actions continued inthe region, warning that no tanker would be allowed to enter or leave withoutcoordination with Iran.
The U.S. military said it hadcompleted a 12th consecutive night of attacks on Iran, hours after U.S.President Donald Trump vowed to destroy an Iranian bridge or power plant everytime Iran shoots at a ship in the Strait of Hormuz.
Goldman expects oil prices toretain most of their recent gains through July and August as global inventoriescontinue to decline, supported by lower Middle East production, seasonal summertravel demand and a sharp slowdown in releases of strategic petroleum reserves.
Meanwhile, European diesel marginshit a record $66.25 a barrel on July 17, supported by Russia's diesel exportban following repeated Ukrainian attacks on its refineries and concerns overfurther disruptions to Middle East supplies, and traded as high as $65.30 abarrel on Thursday.
(REUTERS)
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