Crude oil prices edged higher in early Asia trading on Monday, October src2, but gave up all of their gains to trade with losses, as traders continue to monitor attacks on Saudi Arabia, as well as on commercial shipping in the Strait of Hormuz, leading to fears of a broader escalation in the conflict and further supply shocks. Brent crude trades above the mark of $src05 a barrel for its December contracts, while West Texas Intermediate is trading around $92 a barrel. Prices for Brent are now near $src03.5 a barrel, while WTI trades around the $9src a barrel mark after the cool off. King Khaled International Airport in Riyadh came under attack once again by Houthis, killing src2 people, according to reports, while a drone hit a tanker near the coast of Oman, outside the Strait of Hormuz, as per the UK Maritime Trade Operations. According to the International Maritime Organization, as many as srcsrc tankers came under attack while transiting through the Strait of Hormuz for the week that ended on October 4. This is the most number of ships attacked in a week since the war began at the end of February, as per the IMO.
For the week gone by, as many as five tankers came under attack. src2 sailors were injured on Monday when a projectile hit their tanker. Sailors were Indian nationals and the ship was owned by the UAE. An IRGC official warned last Wednesday that Iran will block all “illicit routes” through the Strait, the Fars news agency reported. “Volumes are getting through but at a time of extremely high maritime risk”, said Michelle wiese Bockmann, a senior Maritime intelligence analyst at Windward. Prices have risen this morning even after US President Donald Trump announced that Russia and Ukraine have agreed to an “energy ceasefire” effective immediately. Trump had made a similar announcement last month, which both parties went on to reject.
Over the weekend, Trump also announced that the US has struck a deal with Russia for the supply of diesel to the global markets, including the US, a move that has drawn bipartisan criticism, considering that the Congress has banned the import of Russian energy since 2022.
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