Brent crude futures rose above the $100 per barrel mark on Wednesday, breaking the symbolic barrier for the first time since July 24. This occurred against the backdrop of escalating conflict in West Asia, intensifying concerns about oil supplies from the region.
Brent futures increased by $2.15, or 2.2%, reaching $100.07 per barrel at 07:21 GMT. Meanwhile, US West Texas Intermediate crude rose by $1.70, or 1.83%, to $94.73 per barrel.
The rise in Brent prices is up a quarter since the beginning of last month, as hopes for a permanent resolution to the six-month conflict between the US and Iran fade.
This week, Houthi attacks supported by Iran on Saudi Arabian energy facilities caused fires at oil production sites, threatening a significant expansion of the confrontation. These attacks could jeopardize crude oil supplies through the Red Sea, which is an important alternative route to the critical Strait of Hormuz, where oil flows have been severely restricted since February 28, the start of the Iranian war.
Several banks, including Goldman Sachs, Bank of America, and HSBC, have raised their crude oil price forecasts in recent days. According to Claudio Galimberti, chief economist at Rystad Energy, in the week before the resumption of hostilities on August 30 via the Strait of Hormuz, about 8–9 million barrels passed per day, double the volume of the previous week; however, this figure has recently fallen below 2 million barrels per day.
Despite non-OPEC oil producers such as the United States, Canada, and Guyana increasing production, the International Energy Agency reported last month that it expects global oil supply to decrease this year by 4.3 million barrels per day, or approximately 4%.