Brent crude rises above $100 a barrel as Middle East conflict intensifies

According to Dawn, Brent crude futures climbed above $100 a barrel on Wednesday, reaching their highest level in more than six weeks and crossing that mark for the first occasion since July 24. The gain came as fighting in the Middle East deepened, raising worries about oil supplies moving out of the region. By 1:02pm PKT, Brent stood at $99.93 after briefly reaching $100.19, while US West Texas Intermediate traded at $94.52 a barrel.

Brent has gained roughly a quarter since early last month, as optimism about a lasting settlement to the six-month-old US-Iran conflict weakens. The war, which started on February 28, pushed Brent to a top of $126.41 a barrel recorded on April 30. Houthi strikes on Saudi energy sites this week caused fires at oil installations, and crude routes through the Red Sea are now at risk.

Dawn quoted Capital Economics analyst Hamad Hussain saying traders appear to expect a longer Middle East conflict, along with the risk that oil flows from the region are disrupted. Banks including Goldman Sachs, Bank of America and HSBC have recently lifted their crude price forecasts. The International Energy Agency said last month it expected global oil supply to fall by 4.3 million bpd this year, about 4pc, even as non-Opec producers raise output.