Oil price today: Oil prices climbed during early trade on Friday on supply concerns after Yemen’s Iran-aligned Houthis intensified attacks on Saudi Arabia, on track for a fourth straight monthly gain and the steepest since July.
Brent on course to finish nearly 14% higher
For the month, Brent was on course to finish nearly 14 per cent higher, while WTI was heading for a 15 per cent jump to close above USD 100 for the first time since April, the Reuters report said.
Houthis escalate attacks on Saudi
On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including its largest oil refinery, Ras Tanura, the Rabigh refinery and an Aramco facility in Abqaiq, while a Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis towards the kingdom’s western region, the Reuters report added.
“Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks,” said MST Marquee Head of Energy Research Saul Kavonic.
US loans 40 million barrels of oil from SPR
The US government has said that oil companies have agreed to borrow about 40 million barrels of crude from the Strategic Petroleum Reserve, the last batch of the US share of a global deal aimed at controlling fuel prices after the US and Israel started the war on Iran, the Reuters report said.
The Energy Department said it awarded contracts on October 28 for nearly 16.8 million barrels. Gunvor, Trafigura Trading, Phillips 66 and Vitol Inc borrowed those barrels, it said in a statement.
The US had offered the 17 million barrels from the SPR on October 16.
The department awarded 23.8 million barrels on October 13 to companies including Exxon Mobil, Atlantic Trading & Marketing and Macquarie Commodities Trading.
Washington agreed in March to loan 172 million barrels of oil from the SPR as part of a wider deal with about 30 countries in the International Energy Agency to release 400 million barrels from reserves around the world, the Reuters report added.
Heavy dependence on the SPR has come at a price, costing some of its ability to calm markets. President Donald Trump’s administration tapped it after the previous administration of former President Joe Biden sold large amounts of SPR oil following Russia’s invasion of Ukraine in 2022. The level of the SPR is now the lowest since 1982 .
(With inputs from Reuters)