Oil
Oil prices jumped more than 2% on Friday and settled at their highest levels since the end of April, as traders braced for a potential escalation in the Iran war after the US midterm elections, with an attack on a tanker in the Strait of Hormuz highlighting supply risks.
Brent crude futures settled at $117.64 a barrel, and US WTI crude finished at $104.12 a barrel. For the week, Brent rose 0.8% and WTI was up 0.8%.
On Friday, a tanker in the Strait of Hormuz was hit by explosive devices attached by a small boat. It was not immediately clear who was behind the attack in the strait, the key sea outlet for Gulf crude.
The US ordered non-emergency government employees and their family members to leave Saudi Arabia effective 23 October due to safety risks, the US embassy in Riyadh said on Friday, citing Houthi attacks on civilian airports and other critical infrastructure.
Gas
Asian spot liquefied natural gas (LNG) prices rose for a fourth consecutive week to a new multi-year high on persistent geopolitical tensions in the Middle East, while Asian buying interest and expectations of stronger winter demand lent additional support.
The average LNG price for December delivery into northeast Asia was $32.50 per million British thermal units, up from $30.50 per mmBtu the week before. However, relatively subdued demand in northeast Asia and signs of recovering Qatari LNG loadings limited further upside.
In Europe, the Dutch TTF gas price settled at $33.97 per mmBtu, posting a weekly gain of 10.7%. Weather forecasts in Asia and Europe had shifted colder in the last week, creating more winter demand and increasing competition for LNG cargoes. Uncertainty over the duration of the cold spell, combined with ongoing geopolitical tensions, added to the market volatility.
This article was supplied by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.
