Brent edges higher amid continued attacks on Saudi Arabia and Hormuz

The front-month ICE Brent contract has gained by $0.31/bbl on the day, to trade at $105.33/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Brent crude’s price has found support after more vessels came under attack in the Strait of Hormuz, while Iran signalled it would step up its campaign against shipping.

A container ship and a tanker have been struck by unknown projectiles within the Strait of Hormuz since yesterday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

“Iranian attacks on tankers transiting the Strait of Hormuz showed no signs of easing,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Iranian officials told Reuters they are deploying new tactics to target ships, in a bid to keep oil prices high and influence next month’s US midterm elections.

“According to data from the UK Maritime Trade Operations, 24 ships were hit in the two weeks to 11 October,” Hynes added.

An administrative building belonging to Saudi Arabia’s state-owned oil company Aramco in Dhahran was also attacked yesterday, causing a fire, Reuters reported citing the country’s energy ministry.

Downward pressure:

Brent’s gains have been capped by some signs of recovering oil flows out of the Persian Gulf.

The US Central Command (CENTCOM) said it had helped ship more than 19 million bbls of crude through the Strait of Hormuz yesterday.

Traders are also weighing the prospect of more diesel supply from Russia.

By Aparupa Mazumder

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