Oil Prices Near $100 Amid Renewed Supply Concerns

Oil prices approached $100 per barrel, with Brent crude rising above $98 for the first time since late July. This increase followed US strikes on three Iranian crude oil tankers in retaliation for missile attacks on US Navy warships.

Hostilities continued with an attack on Saudi Aramco facilities in Jizan, Saudi Arabia. Arne Lohmann Rasmussen, chief analyst at Global Risk Management, indicated that markets are closely monitoring potential disruptions to oil shuttling services.

Prices had previously fallen from $126 per barrel in late April to just over $70 in early July due to a ceasefire between the US and Iran, but have since risen amid renewed tensions. Daan Struyven of Goldman Sachs suggested Brent could reach $120 if shipping attacks escalate.

Energy Aspects reported that commodity funds are shifting to a bullish stance as global oil reserves have decreased by over 400 million barrels since the onset of the Iran conflict, with oil in tankers at multi-year lows.