SINGAPORE: Oil prices jumped more than $3 a barrel on Wednesday, July 29, after US-Saudi strikes in Iraq and Iran’s missile attack on American forces renewed concerns about Middle East supplies.
Brent crude futures gained $3.30, or 3.9%, to $87.39 a barrel by 0300 GMT. US West Texas Intermediate crude rose $3.05, or 3.8%, to $82.31, Reuters reported.
ING analysts linked the rebound to Washington’s announcement that US forces had intercepted ballistic missiles launched from Iran. The analysts said the escalation weakened expectations of a swift de-escalation in the Persian Gulf.
US Central Command said Iran’s Islamic Revolutionary Guard Corps launched several missiles towards American forces in the Middle East. Iran later said it had targeted a US airbase and a CENTCOM facility in Jordan.
Read:Oil Prices Fall Nearly 2% as US-Iran Attacks Pause
Saudi Arabia said its military coordinated with CENTCOM to conduct precision strikes against Iran-backed groups in Iraq. Riyadh blamed the groups for drone attacks against Saudi oil facilities, according to the Saudi Press Agency.
Falling US stockpiles also supported the market. American Petroleum Institute data indicated that crude inventories declined by approximately 3.3 million barrels during the week ended July 24.
The US Energy Information Administration was scheduled to publish its official inventory report later on Wednesday.
OPEC+ may also suspend production increases for three months from October after completing the scheduled restoration of voluntarily reduced output, sources told Reuters.
