Oil tops $114 as traders brace for Iran escalation after US midterms
Oil prices rose more than 3% on Friday, putting Brent crude on track for a fourth consecutive monthly gain, as traders braced for a potential escalation in the US-Iran war following next week’s US midterm elections. A reported attack on a tanker in the Strait of Hormuz added to upward pressure on prices, as disruption to the critical global energy shipping route continued. Brent crude, the international benchmark, rose 3% to $114.12 a barrel, as of 11:03 a.m. EDT.
Left out here: Leaves out what changes the picture
The article speaks of 'a reported attack on a tanker' but never says who reported it or who is said to be behind it. Other outlets reported that Iran's Revolutionary Guard said three tankers exploded after hitting sea mines while using what it called an 'unauthorized' route. Without this, a reader does not know whose account of the incident moved the market.
How we know
- Times of Israel reported“Three tankers exploded and caught fire after hitting sea mines while attempting to cross an unauthorized route south of the Strait of Hormuz over the past 24 hours, Iran’s Revolutionary Guard says”3 oil tankers caught fire after hitting mines in Strait of Hormuz, Iran's Revolutionary Guard says (opens in a new tab)
- Deutsche Welle (English) reported“Iran has, however, recently stepped up its attacks on ships that it sees as using the waterway without proper authorization.”Ship reported on fire off Oman as Iran escalation fears mount (opens in a new tab)
For the month, Brent was on track to finish nearly 14% higher than at the end of September. Energy companies are benefiting significantly from the rally, which is driven by uncertainty over Gulf oil supplies. BP on Friday reported its highest quarterly profit in 18 years, buoyed by the Middle East conflict, which has pushed up oil and gas margins. The UK-based energy giant's underlying replacement cost profit quadrupled to $8.46 billion from $2.2 billion a year earlier.
The quarterly result comfortably exceeded analysts' expectations of $7.3 billion and marked BP's highest profit since it reported $8.9 billion in October 2008.
Read the original article on al-monitor.com (opens in a new tab)