Benchmark Brent crude oil futures climbed above $100 a barrel on Wednesday, reaching their highest point in over six weeks and crossing the symbolic level for the first time since July 24. Escalating tensions in the Middle East drove the rise, raising fears of disruptions to oil shipments from the region.
Brent crude futures were up $2.01, or 2.05%, to $99.93 a barrel after earlier touching $100.19, while U.S. West Texas Intermediate crude was up $1.49, or 1.60%, to $94.52 a barrel.
Brent crude prices have increased by 25% since early last month as optimism regarding a lasting resolution to the six-month U.S.-Iran conflict diminishes.
Since the Iran war began on February 28, Brent crude has reached a high of $126.41 per barrel on April 30.
This week’s rise follows attacks by Iran-backed Houthis on Saudi energy facilities, setting oil installations ablaze and threatening a significant expansion of the conflict.
The attacks also endanger crude shipments through the Red Sea, an important alternative route to the Strait of Hormuz.
Although non-OPEC producers such as the United States, Canada, and Guyana have increased their output, the International Energy Agency announced last month that global oil supply is projected to decrease by 4.3 million barrels per day, roughly 4%, this year.
By CEO NA Editorial Staff
