Oil Rises Amid Concerns Over Middle East Supplies - Sarmad

Oil prices rose on Wednesday amid concerns over supplies from the Middle East, as traders showed caution over risks to shipping through the Red Sea and threats to Saudi Arabia’s oil infrastructure.

Brent crude futures rose $1.21 to $110 a barrel. US West Texas Intermediate crude increased by more than a dollar to $99 a barrel.

Iranian media reported on Tuesday that the Iranian Revolutionary Guard Navy said a supertanker caught fire after striking a sea mine south of the Strait of Hormuz while “violating” Iranian rules.

In a Monday note, Kpler, a ship-tracking firm, reported at least 18 attacks on vessels over two weeks.

Analysts at London Metal Exchange group said in a note that “attacks on oil tankers have extended beyond the Strait of Hormuz… Iran is targeting ships in the south up to the Gulf of Oman, threatening loading operations outside the Arabian Gulf, as well as ship-to-ship transfers that have helped support loading operations in the Middle East amid the ongoing conflict.”

The Houthis announced on Monday attacks on Saudi Arabia targeting an Aramco facility in Yanbu, the Shaybah oil field, King Khalid International Airport in Riyadh, and Abha Airport.

The death toll from a Houthi attack on Monday on a training camp belonging to Yemeni government forces rose to 73 as fighting intensified between the two sides.

Prices had fallen in the previous trading session after Iranian President discussed mediation efforts in a meeting with the Pakistani army chief in Tehran.

Iranian Foreign Minister Abbas Araghchi said in a television interview broadcast on Tuesday that Tehran had not received a response from Saudi Arabia or the Yemeni Houthis to its offer to help mediate talks to stop the fighting between them.

In the United States, two Department of Energy officials said on Tuesday that work was underway with refineries worldwide to boost fuel production after a diesel shortage drove up prices.

Market sources said on Tuesday, citing US Energy Information Administration data, that US crude oil, distillate, and gasoline inventories fell last week.

The sources, who requested anonymity, said crude inventories dropped by 4.9 million barrels, while gasoline inventories fell by about 2 million barrels and distillate inventories declined by about 2.6 million barrels compared with the previous week.