Oil prices hit five-month high: Analyzing catalysts behind surge
Illustrative photo: Oil prices continue to rise (Getty Images)
Brent crude oil prices have reached a five-month high. This occurred against the backdrop of Houthi attacks on facilities in Saudi Arabia and reports of strikes on ships in the Persian Gulf, according to Reuters.
Brent crude futures rose to $111.75 per barrel, the highest level since May. As of 1:20 PM Kyiv time, they were trading at $111.20, up $1.65, or 1.5%.
November futures for US WTI crude oil rose on Tuesday to $110 per barrel, the highest since April. Later, the price dropped to $109.08 per barrel. This is $5.42, or 5.2%, higher than the previous close.
"Oil prices remain well-supported ... This suggests the market is pricing in a significant risk premium, given the situation's volatility," ING analysts emphasized.
Reason for price growth
On Monday, October 19, Yemen's Houthis stated that they had attacked energy facilities, airports, and military targets in Saudi Arabia several times. Specifically, this refers to an Aramco facility in Yanbu, the Shaybah oil field, King Khalid International Airport in Riyadh, and Abha Airport.
However, the Saudi Arabian authorities did not confirm these attacks.
Recall that a few weeks ago, US President Donald Trump stated that the war between the US and Iran would "end soon," and therefore oil prices would drop sharply.
