Oil prices edged higher on Thursday, with Brent crude trading above $110 a barrel. The rise came after fresh Houthi attacks in Saudi Arabia prompted US to order some diplomats and their family members to leave American missions in the Kingdom.At the same time, concerns over shipping safety and oil supplies in the region also persisted.WTI crude was trading at $98.05, up 90 cents or 0.93%, while Brent crude stood at $110, up $1.15 or 1.06%.US officials told Reuters that the state department also plans to withdraw family members from several other American missions in the region.The latest security concerns followed a series of attacks by Yemen’s Iran-aligned Houthis on Wednesday. At least one person was killed and eight others wounded in an attack on a civilian airport in Dammam. A drone attack on a Saudi oil field killed two people.Explosions were also reported in Sirik, in southern Iran, on Wednesday. Iranian media said that the nature and origin of the blasts were unknown.
Shipping risks extend beyond Strait of Hormuz
The threat to energy supplies has extended to maritime routes beyond the Strait of Hormuz. Kpler data showed at least 18 attacks on shipping over the past two weeks.LSEG analysts warned that Iran was targeting tankers further afield, including in the Gulf of Oman. Such attacks were jeopardising Gulf crude loadings and ship-to-ship transfers that support regional loadings.Iran’s leadership also issued fresh statements amid the tensions. Foreign minister Abbas Araqchi told the Financial Times on Wednesday that Iran was fully prepared to defend itself. President Masoud Pezeshkian told state media that the US could not expect dialogue while blockading and threatening Iran.
US crude inventories fall, distillate stocks rise
US crude inventories declined by 3.06 million barrels last week to 412.5 million barrels, according to data released by the US Energy Information Administration (EIA) on Wednesday. The fall was greater than the 820,000-barrel draw expected by analysts in a Reuters poll.Distillate inventories, which include diesel and heating oil, increased by 1.68 million barrels to 104.3 million barrels during the week. Analysts had expected these stockpiles to fall by 1.16 million barrels, EIA data showed.Separately, the Trump administration is offering to loan up to nearly a third of the US emergency heating oil reserve, which holds one million barrels. The department of energy announced the move on Wednesday as the administration seeks to contain prices that have risen amid diesel shortages linked to the wars in Iran and Ukraine.Elsewhere, Russian President Vladimir Putin met US Special Envoy Steve Witkoff in St Petersburg on Wednesday to discuss ending the war in Ukraine. The meeting came as Washington renewed efforts to end Europe’s bloodiest conflict since World War Two.The Kremlin said Putin had agreed to resume US-mediated peace talks with Ukraine as soon as next month. Ukrainian President Volodymyr Zelenskyy backed the proposed talks and said he hoped they would begin as soon as possible.
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