Oil prices rise as Middle East risks offset diesel supply
- Brent crude rose 0.7% to $105.41 per barrel as markets balanced new supply expectations with Middle East security risks.
- Attacks on Saudi Arabia and tanker incidents near the Strait of Hormuz increased concerns over regional crude flows.
- Additional Russian diesel supplies weighed on refined fuel prices after President Trump announced increased exports.
Oil prices moved higher on Monday as traders weighed potential additional supplies against renewed geopolitical risks affecting Middle East energy infrastructure.
Brent crude futures gained 69 cents, or 0.7%, to $105.41 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 57 cents, or 0.6%, to $92.42 per barrel.
The market reacted to fresh attacks in the Middle East, including a strike claimed by Iran-aligned Houthi forces on Riyadh’s international airport that reportedly killed 13 people and injured more than 300.
Additional tanker attacks near the Strait of Hormuz also raised concerns over shipping security and the potential impact on Middle East crude exports.
A tanker was reportedly struck by a drone near Oman’s Sohar, while another vessel was damaged while transiting the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations.
Goldman Sachs raised its December Brent price forecast to $90 per barrel from $85, citing a risk premium of slightly more than $20 per barrel.
The bank expects WTI prices to average $81 per barrel in December 2026 and $73 per barrel in 2027, noting that WTI has traded unusually low compared with Brent due to higher U.S.-Europe shipping costs.
Meanwhile, oil companies including Shell, Chevron and BP began redeploying workers and restoring Gulf of Mexico production after Hurricane Isaias disrupted offshore operations.
