Oil continues to rise after Houthi attacks on Saudi energy facilities

Oil prices on global markets continue to rise. This comes after Saudi Arabia announced the suspension of operations at several of its energy facilities in the south of the country due to attacks by the pro-Iranian Houthis, Bloomberg reported. The Yemeni Shiite rebels struck targets in Saudi Arabia, including a refinery in Jazan with a capacity of 400.000 barrels per day, as well as other facilities supplying the domestic market.

At around 17:00 CEST, the price of North Sea Brent crude was up 0,76 percent at 97,74 dollars per barrel. US light crude WTI was up 1,3 percent at 92,70 dollars per barrel at the same time.

Brent came close to 99 dollars per barrel during the day. The market subsequently gave up some of its earlier gains after reports of progress in talks between Iran and Oman on a transit route through the Strait of Hormuz, but tensions remain high, Bloomberg reported.

"Markets are increasingly pricing in a prolonged conflict in the Middle East. Risks to our price forecast remain significantly tilted to the upside," Goldman Sachs analysts said.

Vitol Group Chief Executive Russell Hardy told a conference in Singapore that markets are showing signs of a commodities shortage, partly as a result of the loss of around two million barrels per day in exports from the Middle East and another two million barrels from Russia due to Ukrainian drone attacks, as Ukraine enters its fifth year of defending itself against Moscow's armed aggression.

In addition to renewed fighting, concerns are being driven by a global decline in inventories and a sharp rise in prices for refined fuels such as diesel. Rising energy prices are fueling fears that central banks will be forced to raise interest rates further to curb inflation.

China, the world's largest oil importer, is providing some relief to markets. It increased purchases of commodities from the Persian Gulf and other sources in August, enabling it to boost exports of oil products, Bloomberg reported.

Brent prices have risen by more than 60 percent since the start of this year. North Sea crude was still selling for just under 60 dollars per barrel at the beginning of January, but reached a high of 126,41 USD per barrel in April.

Oil prices in dollars per barrel (about 159 liters)