Oil prices rise over 3% with Brent over $109
Oil prices rose by more than 3%, with Brent crude surpassing $109 per barrel, amid escalating geopolitical tensions in the Middle East and production disruptions at three major oil fields in Libya. These developments raised concerns about potential supply disruptions in the near future. The suspension of Libyan oil exports and expectations of extended export interruptions increased demand for U.S. oil, especially West Texas Intermediate (WTI), which surged by 5% and approached its highest levels in four months due to the growing need for alternatives in Europe amid ongoing shutdowns. Additionally, attacks on energy infrastructure between Russia and Ukraine, along with a decline in navigation through the Strait of Hormuz to its lowest levels, further pressured prices. Goldman Sachs predicts that Brent could exceed $120 amid continued tensions and an estimated 4 million barrel-per-day decline in Gulf exports by 2027.
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