LONDON, Oct 12 — Oil prices rose to near two-week highs on Monday as attacks on Saudi Arabia overshadowed possible further supplies to the market after United States President Donald Trump hailed fresh Russian diesel exports and a Russia-Ukraine energy ceasefire.
Retracing earlier losses, Brent crude futures rose US$1.24 or 1.2 per cent, to US$106.19 a barrel by 1124 GMT, their highest since September 29. U.S. West Texas Intermediate crude was at US$92.96 a barrel, up US$1.11, or 1.2 per cent.
The Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300. Further attacks happened on Sunday.
In addition, more attacks on tankers sailing through the Strait of Hormuz have been reported this month, threatening to dampen a recovery in Middle East crude exports seen in September.
The United Kingdom Maritime Trade Operations reported that a tanker was struck by a drone near Oman's Sohar, while another was damaged transiting Hormuz.
"The sense of some kind of normality of exports from the Strait of Hormuz was shattered last week. Fresh attacks by the Houthis on Saudi Arabia added to this and helped to lift prices.
"Hard choices over what to defend will increasingly have to be made: oil infrastructure, military installations, royal palaces, civilian airports, or other," said SEB commodities analyst Bjarne Schieldrop.
Goldman Sachs raised its Brent price forecast for December to US$90 a barrel from US$85, estimating a risk premium of just over US$20 a barrel.
"We forecast WTI prices, which are unusually low vs Brent because of high US-Europe shipping costs, to average US$81 in December 2026 and US$73 in 2027," it said in a note.
In the Gulf of Mexico, energy majors Shell, Chevron, and BP are seeking to redeploy personnel and restore production at their platforms after Hurricane Isaias made landfall early on Saturday.
More Russian diesel
ICE gasoil futures fell 2.3 per cent to US$1,449 per metric ton after Trump said on Friday that Russia will immediately supply more than 300,000 metric tons (2.25 million barrels) of diesel to the US and global markets, with more to come later.
"The immediate impact of the deal is questionable, as Russia’s refining capacity has been severely reduced.
"However, Moscow has partially lifted its ban on diesel exports, allowing 500,000 tons (around 3.7 million barrels) to be released onto the international market — equivalent to roughly one day of US consumption and around 13 per cent of global demand," PVM analyst Tamas Varga said.
Trump also unexpectedly announced on Sunday that Ukraine and Russia had agreed to an energy ceasefire. Ukrainian leader Volodymyr Zelenskiy accused Russia of violating the energy ceasefire on Monday, while Russia did not comment.
The International Energy Agency's Fatih Birol said all members should assess whether additional diesel releases are necessary and that countries which have not yet fully delivered pledged volumes should accelerate releases, prioritising diesel.
