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Brent crude prices rose 2%, hitting their highest level in 5 months on Thursday, after new attacks by the Yemeni Houthi group on Saudi Arabia sparked fears of further disruptions to crude supplies from the Middle East.
Brent crude futures climbed $2.24, or 2.2%, to $111.24 a barrel, and US West Texas Intermediate crude increased $1.14, or 1.2%, to $98.29 a barrel.
This rise pushed Brent into technically overbought territory for the third time in a week, putting it on track to record its highest closing level since May 18.
Tamás Varga, an oil analyst at PVM, said, "Reports indicating that oil exports from the Middle East are exceeding pre-conflict levels are being strongly countered by attacks on ships in the Strait of Hormuz and strikes launched by the Houthis on Saudi Arabia and its oil infrastructure."
He added, "No de-escalation is expected until the midterm elections in the United States, which should keep oil prices high."
Morgan Stanley analysts estimated in a note that crude exports from the Middle East reached about 17 million barrels per day last week. Data from Kpler indicates that the average crude exports from the region reached about 18 million barrels per day during the twelve months preceding the outbreak of the war in the Middle East.
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