Brent Oil Prices Hold Above US$100, Middle East Supply Risks Increase
Brent oil prices held above US$100 per barrel in trading on Friday (July 24) after a sharp surge in the previous session. Meanwhile, West Texas Intermediate (WTI) oil prices remained stable at around US$92 per barrel.
The oil price increase was triggered by Houthi attacks on tankers in the Red Sea. The attacks raised the risk of new disruptions to energy shipping routes amid the escalating conflict between the United States and Iran.
Brent for September delivery traded at US$100.82 per barrel after rising 7% in the previous session. So far this week, Brent has strengthened by about 14%, while WTI is at US$92.50 per barrel.
Supply risks also increased following an attack on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast. The terminal is a key export route for Kazakh oil, while global supply has declined due to the ongoing conflict in the Middle East.
Tensions escalated after President Donald Trump threatened to impose massive military sanctions on Iran and the Houthis if they continued to attack ships in the Red Sea. Iran also warned it would retaliate by targeting energy facilities in the region if US attacks escalated.
As long as shipping disruptions in the Red Sea and Strait of Hormuz continue, oil prices still have the potential to rise. Brent is expected to reach US$110 per barrel, and could even reach US$120 if shipping traffic in the Red Sea is further restricted. (asd)*
Source: Newsmaker.id
