Oil prices jump above $100 on supply fears
- Brent crude settled at $107.63 per barrel after rising 6.34%, while WTI reached $102.48 per barrel.
- Oil prices climbed as shipping attacks and Middle East tensions increased concerns over supply disruptions.
- Analysts said future price movements may depend on Chinese crude demand and the duration of regional disruptions.
Oil prices surged above $100 per barrel on Thursday as renewed shipping attacks in the Middle East increased concerns about potential supply disruptions.
Brent crude futures settled at $107.63 per barrel, rising $6.42 or 6.34%, while U.S. West Texas Intermediate crude futures increased $6.43 or 6.69% to $102.48 per barrel.
"Crude oil markets are settling into a prolonged new normal where disruption risk is persistent, not episodic," S&P Global Energy said in an analysis.
The price increase followed reports that Iran attacked 10 ships near the Strait of Hormuz and that Iran-aligned Houthi forces seized control of Yemen’s port of Mocha, increasing concerns over regional shipping routes.
Following the announcement, Brent crude price was up at $107.63 per barrel and WTI crude price was up at $102.48 per barrel.
The two benchmarks reached their highest levels since May 19, with WTI trading above $100 for the first time since May as traders assessed risks to oil flows.
Analysts said the sustainability of the rally could depend on China’s crude purchases, with stronger demand potentially increasing the impact of supply disruptions while weaker imports could limit price gains.
