Brent crude and WTI climbed to near two-week highs on Monday. Attacks on Saudi Arabia and tankers near the Strait of Hormuz outweighed news of more Russian diesel supply.
Oil prices rose to near two-week highs on Monday as attacks on Saudi Arabia overshadowed possible further supplies, after US President Donald Trump hailed fresh Russian diesel exports and a Russia-Ukraine energy ceasefire.
Retracing earlier losses, Brent futures rose $1.24 or 1.2%, to $106.19 a barrel by 1124 GMT, their highest since September 29. US West Texas Intermediate crude was at $92.96 a barrel, up $1.11, or 1.2%.
Houthi strike on Riyadh and tanker attacks lift prices
The Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300. Further attacks happened on Sunday.
In addition, more attacks on tankers sailing through the Strait of Hormuz have been reported this month, threatening to dampen a recovery in Middle East crude exports seen in September. The United Kingdom Maritime Trade Operations reported that a drone struck a tanker near Oman's Sohar, while another was damaged transiting Hormuz.
SEB commodities analyst Bjarne Schieldrop said fresh Houthi attacks on Saudi Arabia added to the Hormuz disruption and helped lift prices. He also said: "Hard choices over what to defend will increasingly have to be made".
Goldman raises its Brent forecast
Goldman Sachs raised its Brent price forecast for December to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel.
The bank also forecast WTI to average $81 in December 2026 and $73 in 2027. It said WTI prices are unusually low versus Brent because of high US-Europe shipping costs.
Russian diesel deal draws doubt from PVM analyst
ICE gasoil futures fell 2.3% to $1,449 per metric ton after Trump said on Friday that Russia will immediately supply more than 300,000 metric tons (2.25 million barrels) of diesel to US and global markets, with more to come later.
PVM analyst Tamas Varga said the immediate impact of the deal is questionable because Russia's refining capacity has been severely reduced. He added that Moscow has partially lifted its ban on diesel exports, allowing 500,000 tons to be released onto the international market.
Trump also unexpectedly announced on Sunday that Ukraine and Russia had agreed to an energy ceasefire. Ukrainian leader Volodymyr Zelenskiy accused Russia of violating it on Monday, while Russia did not comment.
Source: Investing.com (Reuters)
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