Oil prices advanced on Tuesday, with Brent hovering close to a five-month peak. Brent crude futures climbed 55 cents, or 0.50 percent, to $110.10 a barrel by 06:19 a.m. Saudi time. The benchmark had earlier reached $110.70 a barrel in the previous session, marking its highest level since May 20.
The US West Texas Intermediate crude contract for November delivery, set to expire on Tuesday, rose 0.24 percent to $103.91. The more-active December contract increased by 39 cents, or 0.40 percent, to reach $98.93.
Analysts at ING said oil prices remained well-supported by market conditions and high volatility. They added that if flows continued uninhibited despite the geopolitical environment, the risk premium would likely erode slowly, though there were no signs of this yet.
Shiptracker Kpler reported on Monday that at least 18 vessels had been attacked over a two-week period. Yemen’s Iran-aligned Houthis announced on Monday that they had launched multiple attacks on Saudi energy, airport, and military targets. These claims included strikes on an Aramco site in Yanbu, the Shaybah oilfield, Riyadh’s King Khalid International Airport, and Abha airport. Saudi authorities did not immediately confirm the claims.
In a separate incident on Monday, a Houthi attack on a training camp for government security forces in Yemen’s Shabwa province killed 58 people. More than 200 others were injured in the strike. These renewed attacks higher fears about regional stability and maintained risks to energy supply, keeping oil prices above $100 a barrel.
A preliminary Reuters poll released on Monday indicated that US crude oil stockpiles were expected to have fallen last week alongside product inventories. An executive order signed on Friday by President Donald Trump waived key Russia-related US sanctions and tariffs, including goods duties and penalties for energy purchases.
Trump stated on Saturday that he had yet to announce a final decision on the matter. Secretary of State Marco Rubio said officials wanted more time to evaluate the situation.
Data from the International Energy Agency last week showed that Russia’s crude oil production increased by 65,000 barrels per day in September to reach 8.43 million bpd. Production remained about 870,000 bpd below the level recorded a year ago.
Tim Waterer, chief analyst at KCM Trade, said that while Russian diesel supply offered theoretical relief, traders were far more focused on ongoing risks to energy infrastructure across the Gulf region.
