Oil prices rise on Tuesday

Oil prices rose on Tuesday, with Brent crude trading near a five-month high as reported Houthi attacks on Saudi energy infrastructure and vessel attacks in the Gulf heightened concerns over regional supply disruptions.

Brent crude futures gained 0.47 per cent to $110.07 a barrel by 0628 GMT, after reaching $110.70 in the previous session, its highest level since May 20. US West Texas Intermediate (WTI) crude futures for November delivery rose 0.36 per cent to $104.03 a barrel, while the more active December contract increased 0.26 per cent to $98.80.

Yemen’s Iran-aligned Houthis claimed on Monday to have attacked several Saudi energy, airport and military targets, including an Aramco site in Yanbu and the Shaybah oilfield. Saudi authorities did not immediately confirm the claims, which Reuters could not independently verify.

At least 18 vessels were reportedly attacked over two weeks, according to shiptracker Kpler, keeping the geopolitical risk premium in oil prices elevated.

ING analysts said prices remained supported by market concerns over the volatile situation, adding that the risk premium could gradually decline if oil flows continued uninterrupted.

Meanwhile, a preliminary Reuters poll showed that US crude oil and product inventories were expected to have fallen last week.

The potential for additional Russian diesel supplies following US President Donald Trump’s move to waive key Russia-related sanctions and tariffs offered some relief, but traders remained more focused on the risk of further damage to energy infrastructure across the Gulf, said Tim Waterer, chief analyst at KCM Trade.