Brent oil price hits highest this year on fresh supply threats


LONDON: Global oil benchmark Brent on Tuesday rose above $89 a barrel for the first time since October, albeit briefly, as oil supplies faced fresh threats from Ukranian attacks on Russian energy facilities and escalating conflict in the Middle East.

Brent futures for June delivery were up $1.16, or 1.3%, at $88.58 a barrel by 1218 GMT after touching a peak of $89.08.

U.S. West Texas Intermediate (WTI) crude futures for May rose $1.23, or about 1.5%, to $84.94.

A Ukrainian drone struck one of Russia's biggest refineries on Tuesday in an attack that Russia initially said it repelled.

A Reuters analysis of images showing the impact of the attack suggest it hit the refinery's primary oil refining unit, which accounts for about half of the plant's total annual production capacity of 340,000 barrels per day (bpd).

Russia, among the top three global oil producers and one of the largest exporters of oil products, has been contending with a spate of ukrainian attacks on its oil refineries and has mounted its own attacks on Ukrainian energy infrastructure.

In the Middle East, Iran has vowed to take revenge on Israel for an airstrike that killed two of its top generals and five other military advisers at the Iranian embassy compound in Damascus.

Israel has been at war against Iran-backed Palestinian group Hamas in Gaza, but direct Iranian involvement could spark a "region-wide conflict with plausible impact on oil supply", said Tamas Varga at oil broker PVM.

Elsewhere, an ecological organisation on Tuesday said that a European satellite had spotted an oil spill in the northern Caspian Sea near Kazakhstan's giant Kashagan oilfield.

Markets are also looking ahead to Wednesday's ministerial panel meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+. The panel is unlikely to recommend any change in oil output policy, OPEC+ sources told Reuters.

The demand outlook perked up, meanwhile, as March data showed an expansion in Chinese manufacturing activity for the first time in six months and in the U.S. for the first time in a year and a half. - Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Brent , WTI , OPEC

   

Next In Business News

Batu Kawan net profit eases to RM84.72mil in 2Q
Opensys to cultivate new revenue streams alongside core biz expansions
SunCon secures RM1.72bil in new orders for 1Q24
Magma executive chairman Ismail Abdullah retires
Ringgit appreciates vs US dollar at the close
KLK 2Q net profit declines to RM117.07mil
Teladan to launch projects with RM1.2bil GDV
Bursa Malaysia to close for Wesak Day
Hong Leong Bank to fully subscribe to RM350mil Asean Green Bond to finance green warehousing
Coastal Contracts secures vessel sale and 5-year charter extension

Others Also Read