Brent Oil Hits $115 as Mideast War Fears and Ship Costs Rise
Brent crude has touched $115 for the first time since May. Traders are worried about a wider war in the Gulf, and the cost of insuring and moving oil tankers is rising too.
Oil prices rose again on Friday. Brent crude gained 2.5% to $115.99 a barrel, its highest level since May. It is on track for a weekly gain of more than 5%. US WTI crude rose 3% to $102.46.
Interestingly, oil is not short right now. ING analysts say the rally comes from fear, not current supply. Shipping data cited by the Wall Street Journal shows more oil is leaving the Gulf than before the US and Israel attacked Iran in late February. Traders worry that this recovery could stop.
War news driving the fear
Reports say the US and Israel may plan new strikes on Iran after the US midterm elections in November. Iran has promised to hit back, possibly at economic and civilian targets. Meanwhile, Houthi fighters in Yemen keep attacking sites in Saudi Arabia. On Thursday, Saudi Aramco ordered its Dhahran headquarters to be evacuated.
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