SINGAPORE, Oct 30 — Oil prices rose on Friday, set for a fourth monthly gain, as an attack on a tanker in the Strait of Hormuz highlighted the continuing supply risks from the United States (US)-Israeli war on Iran, which has entered its eighth month.
Brent crude futures for December, which expire on Friday, advanced US$1.20, or 1.04 per cent, to US$116.08 a barrel as of 0323 GMT. The more-active January contract gained US$1.39 to US$112.19.
U.S. West Texas Intermediate (WTI) crude futures climbed US$1.37, or 1.34 per cent, to US$103.37.
For the month, Brent was on course to finish nearly 11 per cent higher, while WTI was heading for a 14 per cent jump.
On Friday, the United Kingdom Maritime Trade Operations reported that a tanker in the Strait of Hormuz — the key sea outlet for Gulf crude and fuel supplies — was hit by explosive devices attached by a small boat. It was not immediately clear who was behind the attack.
“Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks,” said MST Marquee energy research head Saul Kavonic.
On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including its largest oil refinery Ras Tanura, the Rabigh refinery, and a production facility in Abqaiq owned by state company Saudi Aramco, while a Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis towards the kingdom's western region.
Similarly, US President Donald Trump said that Vice President JD Vance has reached out to Iran to help the country get medical supplies, after US media reported Vance had written to Tehran's top security official to revive peace talks.
Iran's semi-official Tasnim news agency reported that Tehran has received a letter from Vance but it has not responded to it yet, adding that Iran wants the US to meet its conditions and "any position that contradicts this framework is unacceptable."
Two sources familiar with the developments told Reuters that amid the security concerns in the Middle East, ExxonMobil and Chevron have cancelled plans for their executives to travel to the United Arab Emirates' biggest oil show next week.
During a media briefing in Singapore on Thursday, Saxo Bank commodity strategy head Ole Hansen said that oil prices could become even more volatile in the next couple of weeks due to Israel's Parliamentary election and the US midterm congressional vote.
He noted that the heightened uncertainty made it difficult to forecast prices, but Hansen expects crude to trade in a higher range of US$70 to US$90 a barrel, compared with the pre-war level of US$60 to US$70, even after the conflict ends due to the risk of renewed hostilities and the need for inventory replenishment.
