Oil prices sustained spiking trend in the international oil markets early Thursday after strikes against energy infrastructure in the Middle East raised further concerns over crude oil supply globally.
News reports indicated that Brent crude rose more than 10% to $119.13 a barrel, while the main US oil contract West Texas Intermediate rose 2.6% to $98.81 a barrel.
According to the reports, Iranian missiles have struck the world’s largest liquefied natural gas hub in Qatar, while drones hit oil refineries in Saudi Arabia and Kuwait.
WTI has been trading at its widest discount to Brent in 11 years due to releases from US strategic reserves and higher freight costs, while renewed attacks on Middle Eastern energy facilities boosted support for Brent.
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An analyst at Priyanka Sachdeva, Phillip Nova, noted: “Escalation in the Middle East, precise attacks on oil infrastructure, and the death of Iranian leadership all point to a prolonged disruption in oil supplies.
“Adding fuel to the fire, the Federal Reserve served ‘steady rates’ with a hawkish narrative, pointing to the economic concerns that follow a war”, the expert added.
Meanwhile, despite the uncertainties in the world’s oil market, the U.S Federal Reserve held interest rates steady late Wednesday, anticipating higher inflation as policymakers take stock of the impact of the US-Israel war with Iran.
QatarEnergy confirmed that Iran’s missile attacks on Ras Laffan, the site of Qatar’s core LNG processing operations, caused extensive damage to its energy hub in the war region, while Saudi Arabia said it intercepted and destroyed four ballistic missiles launched toward Riyadh and an attempted drone attack on a gas facility.
