Oil Trades Near $107 as Houthi-Saudi Fighting Escalates

Summary

Brent and WTI crude rose back above $100, with Brent near $110 and at a four-month high, as Middle East fighting between Houthi militants and Saudi-backed forces escalated. The report cited US attacks on Iranian tankers, Houthi attacks on Saudi infrastructure, and supply concerns around the Strait of Hormuz. It also noted Chinese buying, rising diesel and natural gas prices, the Russia-Ukraine war, and record seasonal US gasoline, concluding that energy prices are likely to go higher and complicate inflation.

• Oil benchmarks are back above $100; Brent is near $110 and at a four-month high.
• Middle East escalation includes US-Iran tanker attacks and Houthi attacks on Saudi infrastructure.
• Supply concerns focus on the Strait of Hormuz and tankers avoiding detection.
• Chinese buying is tightening the global oil market.
• Energy strength extends to diesel, natural gas, and record seasonal US gasoline.
• The Russia-Ukraine war adds to upward pressure on energy prices.
• The speaker sees grounds for prices to rise and says energy is going higher.
• Higher energy prices complicate the inflation outlook.