Oil prices continued to rise after the deadly attack on the King Khalid International Airport in Riyadh and the new escalation of tensions in the Middle East. Ukraine's accusations that Russia continues to strike its energy infrastructure also put additional pressure on the market.
Brent oil futures rose 2 percent to $106.81 per barrel. U.S. light crude WTI rose 1.92 percent to $93.60 per barrel. Earlier, Brent crossed the $107 per barrel threshold for the first time since September 29.
Riyadh attack heightens supply concerns
Yemen's Iran-backed Houthis attacked King Khalid International Airport in the Saudi capital on Saturday. The attack killed 12 people and wounded more than 300. The attack is seen as a serious escalation of the conflict over the strike on a key air transport hub in Saudi Arabia.
Early Monday, the Saudi-led coalition said it had repelled a new wave of drone and missile attacks on the country. The development followed a phone call between Iranian Foreign Minister Abbas Araghchi and his Saudi counterpart, Faisal bin Farhan bin Abdullah. The two discussed the latest escalation and efforts to contain it.
Kiev accused Moscow of violating the ceasefire
Ukrainian President Volodymyr Zelensky said that “Russia has violated the energy ceasefire“ announced by US President Donald Trump. According to him, Russian forces attacked a natural gas production facility in Ukraine.
Against this backdrop, expectations for new Russian energy supplies to world markets have increased. Trump announced that Russia would deliver over 4 million tons of diesel fuel under an agreement reached with Russian President Vladimir Putin during a telephone conversation.
Limited production in the United States is also affecting prices. About 1.2 million barrels of oil per day from production in the Gulf of Mexico have been suspended due to Hurricane Isaias, the Bureau of Safety and Environmental Control reported.
Sources: bta.bg