Khaberni - Brent crude prices climbed more than 4% on Wednesday, following an Israeli attack targeting Iranian energy facilities which led to escalated tensions in the region, exacerbating concerns about the disruption of supplies.
With no signs of the conflict with Iran easing, which has significantly impacted oil markets, Brent futures surpassed the $100 per barrel mark during the last four sessions.
According to Reuters, Brent futures increased by $4.53, or 4.4%, reaching $107.95 per barrel, after climbing to $108.60 earlier in the session. Similarly, West Texas Intermediate crude rose by $1.91, or 2%, reaching $98.12 per barrel.
The SEB analyst, Olli Hefalpaay, said: "The attacks on the South Pars field in Iran led to rising oil and gas prices, and with any further escalation of attacks on energy infrastructure, the climb in prices will continue."
The Iranian news agency Fars reported on Wednesday that some tanks and gas facilities at the Asaluyeh refinery were bombed.
In Iraq, sources at the North Oil Company reported that the crude oil exports through the pipeline resumed after an agreement between Baghdad and the Kurdistan Regional Government to restart flows, with Iraq aiming to pump at least 100,000 barrels of crude oil per day through the port.
The MUFG analyst, Sujin Kim, said: "Despite this development, the relief on supply pressure remains limited, as Iraq's production is about a third of pre-crisis levels, and movement of oil tankers through the Strait of Hormuz is still largely restricted."
Sources on March 8th stated that oil production from the main fields in southern Iraq, where most of the Iraqi crude oil is produced and exported, dropped by 70% to 1.3 million barrels per day, due to the virtual closure of the Strait of Hormuz caused by the war, noting that about 20% of the global oil supplies pass through this strait.
Regarding military developments, the US military reported on Tuesday that it targeted sites on the Iranian coast near the Strait of Hormuz, following Iranian anti-ship missiles posing a danger to international navigation. Iran also confirmed the killing of Ali Larijani, Secretary of the Supreme National Security Council, in an Israeli attack.
On the inventory front, oil and gas sector sources cited the American Petroleum Institute saying that US crude oil inventories increased by 6.56 million barrels in the week ending March 13th, which is much higher than the anticipated increase of about 380,000 barrels according to a survey conducted by Reuters.
