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Global oil prices surged by more than $3 a barrel to above $116, reaching a six-month high, amid fears of disruptions to energy supplies from the Middle East. The rise was recorded at the close of trading on Friday, driven in part by Houthi attacks in Saudi Arabia and reports of an oil spill off the coast of the United Arab Emirates (UAE).
According to Reuters, Brent crude rose $3.55, or 3.14%, to settle at $116.72 a barrel on Friday, its highest level since April 29. US West Texas Intermediate (WTI) crude gained $3.80, or 3.8%, to reach $103.27 a barrel.
Over the week, Brent prices rose 6%, while WTI gained 2.3%.
Adam Turnquist, chief technical strategist at LPL Financial, said concerns over supply disruptions had intensified following attacks by Iran-backed Houthi militants on several targets, including energy infrastructure in Saudi Arabia. The attacks have contributed to the rise in oil prices, he said.
Meanwhile, the UAE’s Ministry of Climate Change and Environment reported an oil spill off the coast of Umm Al Quwain. Authorities have yet to identify the vessel involved or determine the cause of the spill.
Shipping sources also said an oil tanker named *Gem No. 2* was damaged on October 9 after an unidentified object struck it west of the UAE’s Al Jazirah area.
Several countries are releasing fuel from strategic reserves to maintain supplies and ease market pressures. The US Department of Energy has authorised an exchange of up to 400,000 barrels of crude oil from the Strategic Petroleum Reserve to help address supply shortages at a refinery in Louisiana.
Germany has also moved to sell diesel, heating oil and crude oil from its strategic reserves.
Elsewhere, oil production in Libya has declined after a valve on a pipeline transporting crude from two oilfields to the port of Zawiya was shut.
Meanwhile, a vessel carrying diesel from Russia is heading towards New York as part of efforts to lower diesel prices in the United States ahead of the midterm elections. Source: Reuters.
