Brent crude oil prices rose to nearly $107 per barrel on Monday as fresh attacks on Saudi Arabia and oil tankers near the Strait of Hormuz heightened concerns about global oil supplies, outweighing expectations of additional Russian diesel exports.
Brent crude gained $2.09, or two per cent, to $107 per barrel on Monday morning, while the United States benchmark, West Texas Intermediate, rose by $1.93, or 2.1 per cent, to $93.78 per barrel, according to Oilprice.com.
The increase followed a weekend of attacks in the Middle East, including a Houthi strike on Riyadh’s international airport on Saturday that killed 13 people and wounded more than 300.
Further attacks were reported on Sunday, while two oil tankers were struck near Oman and in the Strait of Hormuz.
The tanker attacks have raised concerns about the recovery of oil exports from the Gulf, which reached 81 per cent of pre-war levels in September.
Crude oil and condensate shipments recovered to 91 per cent, while refined petroleum product exports remained at 60 per cent.
The latest price increase came despite expectations of additional Russian diesel supplies and an agreement announced by United States President Donald Trump for Russia and Ukraine to stop attacking each other’s energy infrastructure.
Trump said on Friday that Russia would immediately supply more than 300,000 metric tonnes of diesel, equivalent to about 2.25 million barrels, to the United States and global markets, with further supplies expected.
Russia has also partially lifted restrictions on diesel exports, allowing an additional 500,000 tonnes, or approximately 3.7 million barrels, to enter the international market.
However, Ukrainian President Volodymyr Zelensky accused Russia of violating the energy infrastructure ceasefire agreement on Monday.
Meanwhile, the Organisation of the Petroleum Exporting Countries sharply reduced its expectations for global oil demand growth in 2026.
OPEC Secretary-General, Haitham Al Ghais, said on Monday that the group expected global oil demand to grow by 400,000 barrels per day this year, down from its initial forecast of 1.4 million barrels per day at the beginning of the year.
The latest projection represents a reduction of one million barrels per day from the group’s original outlook, although it is slightly higher than the 380,000 barrels per day forecast issued in September.
OPEC expects much of the oil demand deferred during this year’s disruptions to return in 2027.
The International Energy Agency, however, projected a sharper contraction, forecasting that global oil consumption would decline by 2.5 million barrels per day in 2026 before rebounding by 2.6 million barrels per day in 2027.
In the United States, oil companies, including Shell, Chevron and BP, were preparing to restore offshore production in the Gulf of Mexico after Hurricane Isaias disrupted operations over the weekend.