Oil rises after attacks on Saudi oil sites and ships near Hormuz
Oil prices rose Wednesday after an attack on a Saudi Aramco office building and on ships near the Strait of Hormuz. Brent crude, the world benchmark, traded between about $105.89 and $106.60 a barrel. Traders fear the fighting could cut oil supplies from the region, though exports have kept flowing so far.
Oil prices rose Wednesday after attacks on Saudi Arabia's oil industry and on ships near the Strait of Hormuz, CNBC and the Hindustan Times reported.
Brent crude, the global benchmark, rose 91 cents, or 0.9%, to $106.60 a barrel at 11:10 GMT, the Hindustan Times reported, citing Reuters. U.S. crude rose $1.65, or 1.8%, to $95.79.
CNBC reported a smaller gain later in the morning, saying prices had pulled back from earlier highs. It said Brent was 20 cents higher at $105.89 a barrel, while U.S. crude was up $1.27 to $95.41.
Saudi Arabia's energy ministry said an office building belonging to state oil company Saudi Aramco in Dhahran was attacked overnight, both outlets reported. The Hindustan Times said the Iran-allied Houthis carried out the attack, which caused a limited fire. CNBC said no injuries were reported.
The Houthis have fired missiles and drones at Saudi Arabia over the past week, including a deadly strike on an international airport, both outlets said.
Shipping near the Strait of Hormuz, a key route for the world's oil, is also under threat. A container ship sank after hitting a naval mine south of the strait, according to a statement from Iran's Revolutionary Guards navy carried by Iranian state media, the Hindustan Times reported.
Market watchers worry the fighting could cut oil exports from the region, said Giovanni Staunovo, an analyst at UBS, according to the Hindustan Times. But he said exports had continued so far.
The International Energy Agency warned in a report Wednesday that tight diesel markets could last well into 2027, CNBC reported. Hedge fund manager Paul Tudor Jones told CNBC oil could rise another $20 to $25. "I am long oil... bullish oil," he said.
What we know: Oil rose as attacks hit Saudi Arabia and shipping near Hormuz.
What we don't: Whether the attacks will actually cut oil supplies.
Where outlets agree CNBC and the Hindustan Times both report that oil prices rose Wednesday and that Saudi Arabia's energy ministry said an Aramco building in Dhahran was attacked.
Where they differ The outlets cited here report the same key facts so far.