Global crude oil prices climbed above $100 per barrel on Thursday as escalating attacks on commercial shipping in the Red Sea heightened fears of prolonged disruptions to global oil supplies.
Brent crude, the international benchmark, traded at $100.69 per barrel after hitting an intraday high of $101.01, marking its first return above the $100 mark in nearly two months. US West Texas Intermediate also recorded strong gains as traders reacted to growing geopolitical risks.
The latest rally followed claims by Yemen’s Houthi rebels that they attacked two Saudi oil tankers in the Bab el-Mandeb Strait after announcing a naval blockade of Saudi oil exports earlier this week.
The attacks reportedly forced several commercial vessels to reroute or delay passage through the strategic waterway, raising concerns that crude exports from the Middle East could face prolonged disruptions.
The situation has intensified fears that the supply crisis has expanded beyond the Strait of Hormuz to the Red Sea, placing two of the world’s busiest oil shipping routes under pressure.
Brent crude has gained about 20 per cent over the past two weeks as repeated attacks on commercial shipping and renewed regional hostilities erased earlier hopes of easing geopolitical tensions.
Supply concerns have also increased outside the Middle East. Kazakhstan has reportedly cut oil production after drone attacks disrupted operations at the Caspian Pipeline Consortium terminal on the Black Sea, while Indian state-owned refiners have suspended Iraqi crude purchases because of shipping risks through the Strait of Hormuz. Russian fuel exports also remain constrained following months of Ukrainian drone strikes on refineries.
The tightening supply outlook has been reinforced by falling commercial crude inventories and the continued release of strategic petroleum reserves by several governments to ease supply shortages. China has also reduced imports by relying on existing stockpiles.
For Nigeria, higher crude prices could boost export earnings and improve government revenue. However, analysts warn that the surge may also increase the cost of imported refined petroleum products, fuel inflationary pressures and raise the burden on consumers if domestic refining capacity remains insufficient.
