Oil prices jumped on Thursday, with Brent crude rising toward $100 a barrel after reports of an attack on two oil tankers near Iraq's Basra port rekindled concerns about supply disruptions in the Middle East.
International benchmark Brent crude traded at 97.74 per barrel at 9.04 a.m. local time (0604 GMT), up 6.6% from the previous close of $91.68.
US benchmark West Texas Intermediate (WTI) increased 6.5% to $93.07 per barrel, compared with $87.41 in the previous session.
Prices surged after reports that two international oil tankers were attacked in the northern Gulf near Iraq and Kuwait, briefly pushing futures above $100 per barrel.
The rise came despite an agreement by the 32 member countries of the International Energy Agency (IEA) to release about 400 million barrels from strategic oil reserves, the largest coordinated release in the agency’s history.
The US Department of Energy said on Thursday that the administration had also decided to release 172 million barrels of oil from the Strategic Petroleum Reserve (SPR).
The oil will be supplied to the market over roughly 120 days. The statement added that the strategic reserve is expected to be replenished within the next year with around 200 million barrels — about 20% more than the volume to be withdrawn — without additional costs to taxpayers.
Despite expectations that additional supply could ease global supply concerns and limit price gains, reports of a tanker attack near Iraq’s Basra port reignited fears of potential disruptions.
At least one person was killed in the attack on two oil tankers in territorial waters near the southern Iraqi port of Basra, an official said early Thursday.
Speaking to Al-Iraqiya News, Lt. Gen. Saad Maan of the Security Media Cell confirmed the strikes on oil tankers in the port of Umm Qasr, adding that 38 crew members were rescued.
"Two oil tankers were subjected to a cowardly act of sabotage," he said, noting the attack took place within Iraqi territorial waters.
Maan said six ships were deployed to rescue the crews, stressing that the government is making an effort to ensure that Iraq does not become a party to the war.
The developments have heightened concerns over risks to energy shipments in the Middle East, strengthening fears of supply disruptions.
- US crude oil inventories up by 0.9%
Meanwhile, US commercial crude oil inventories increased by 0.9% in the week ending March 3, according to data released by the Energy Information Administration (EIA) late Wednesday.
Inventories rose by about 3.8 million barrels to 443.1 million barrels. Market expectations had pointed to an increase of about 1.4 million barrels.
The rise in inventory pointed to weaker demand in the world’s biggest crude consumer, which could limit further price increase.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
