Oil prices surged on Friday, with Brent crude recording its highest in almost six months as fresh Houthi attacks in Saudi Arabia and a reported oil spill in the United Arab Emirates fuelled fears of supply trouble across the Middle East.
Global oil benchmark Brent futures gained $3.55, or 3.14%, to settle at $116.72 a barrel, the highest close since April 29. US West Texas Intermediate (WTI) rose $3.80, or 3.8%, to end the session at $103.27.
For the week, Brent climbed 6%, well ahead of WTI’s 2.3% rise, as traders kept a close eye on growing risks to regional energy supplies.
Earlier on Friday, the UAE said work was underway to contain an oil leak from a tanker vessel offshore. Authorities closed beaches and warned fishermen to stay away from the area. Attacks on commercial vessels in Gulf shipping lanes have intensified since the US-Israel war with Iran began in February. Security risks to maritime traffic, along with concerns over the environmental fallout, have pushed oil prices higher in recent weeks.
October has seen the highest number of attacks on commercial ships in the Strait of Hormuz since the war began, according to data compiled by tracking agencies. At least 38 confirmed strikes on vessels in the waterway were reported this month, taking the total to 113 since the conflict started. The United Kingdom Maritime Trade Operations, however, counted 135 reported incidents as of October 16, and noted that not every attack may be captured in the reported data.
Meanwhile, the Saudi-led coalition said early Saturday that its air defence systems had intercepted and destroyed a ballistic missile fired by the Houthis towards the Saudi capital. It had earlier reported shooting down a drone aimed at Saudi Arabia’s Eastern Province.