TOKYO: Global oil prices rose on Wednesday following attacks on two vessels in the Strait of Hormuz, as escalating tensions in the Middle East heightened concerns over the security of oil supplies. Reports that Iran has adopted new tactics against vessels have added to uncertainty in global energy markets.
Brent crude futures rose by 63 cents, or 0.6%, to $106.32 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures gained 66 cents, or 0.7%, to reach $94.80 a barrel.
Both benchmarks had risen by more than $1 a barrel earlier in the session before giving up some of their gains.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said escalating tensions between Saudi Arabia and the Houthi group were raising concerns about global oil supplies and putting upward pressure on prices.
However, he noted that expectations of increased Russian diesel exports could help ease supply tightness in the market. This prospect may also limit sharp fluctuations in crude oil prices.
Kikukawa expects US WTI crude to trade within a range of $90 to $100 a barrel in the coming period. However, developments in the Middle East and potential disruptions to global oil supplies are likely to remain key factors influencing the direction of prices.
