Oil prices rise sharply again, Brent approaches $110 a barrel

Oil prices are rising sharply again today despite an initial decline. They are reacting to reports of further attacks on oil facilities in the Middle East. North Sea Brent crude was up more than six percent shortly after 15:30 CET, approaching $110 a barrel. US light crude West Texas Intermediate (WTI) was up around three percent, climbing above $99 a barrel.

Iranian news agency Tasnim reported today that some facilities belonging to Iran’s oil industry had been attacked. Iran’s Revolutionary Guards called for the evacuation of some oil facilities in Saudi Arabia, the United Arab Emirates and Qatar. “Any further escalation of attacks on energy infrastructure would lead to further price increases,” Ole Hvalbye, an analyst at SEB, said, according to Reuters.

The conflict in the Middle East was triggered in late February by US-Israeli attacks on Iran. Among other things, the conflict has brought shipping through the Strait of Hormuz to a standstill. Around a fifth of the world’s oil and natural gas supplies normally pass through the strait. Concerns about supply pushed the price of Brent close to $120 a barrel this month.

Oil prices rose by around three percent on Tuesday. They initially fell today, partly in response to a report that Iraq was resuming oil exports via a pipeline that runs through a region inhabited by the Kurdish minority. Analysts said, however, that this development offered only limited relief, as Iraqi oil production remains well below normal levels and shipping through the Strait of Hormuz continues to be severely restricted.

Oil prices in dollars per barrel (about 159 litres)