Crude oil prices rise above $107 a barrel
Oil prices rose above $107 a barrel on Monday as escalating tensions in the Middle East increased concerns about disruptions to global energy supplies.
Brent crude for November delivery gained 2.8 per cent to $107.54 a barrel, while US benchmark West Texas Intermediate (WTI) for October rose 2.3 per cent to $102.34.
Both benchmarks extended gains recorded the previous week after climbing back above the $100-a-barrel mark.
Market attention remained focused on the Middle East, where security concerns have raised fears over disruptions to key oil export routes.
Saudi Arabia temporarily shut its East-West oil pipeline following drone attacks, adding to concerns about the movement of crude supplies from the region.
The development came as a merchant vessel was struck in the Strait of Hormuz on Sunday. Iranian authorities said one person was killed and three others were injured in the incident.
The Strait of Hormuz is a major route for global oil shipments, making disruptions in the waterway a concern for international energy markets.
According to Channels Television, Iran now requires vessels to obtain permission to transit the strait and is considering a mechanism to impose service fees. Oman has also postponed talks between Iran and Gulf states concerning the future of the strategic waterway.
The latest developments have increased uncertainty around shipping and energy supplies in the region as traders monitor the situation.
The rise in crude prices reflects market concerns that continued instability could affect oil production, transportation and exports.
For oil-importing countries, sustained increases in crude prices could also put pressure on fuel and other energy-related costs.
Source: Channels Television / AFP