CNBC _ Oil prices continued to rise during Monday’s trading, with Brent crude oil trending to record record monthly gains, in light of the escalation of geopolitical tensions and the expansion of the scope of the war in the Middle East.
Brent crude futures rose 2.4% to $115.35 per barrel
Brent crude futures rose by about 2.4%, reaching $115.35 per barrel, after ending the Friday session with an increase of 4.2%.
US crude rose 1.7% to $101.39 a barrel
US West Texas Intermediate crude also rose by 1.7% to $101.39 per barrel, after gains of 5.5% in the previous session.
Vandana Hari, founder of Vanda Insights, a company specializing in analyzing oil markets, said that the markets have largely ruled out reaching a settlement soon through negotiations, despite US President Donald Trump’s statements about holding “direct and indirect” talks with Iran, and his readiness for an additional military escalation, which supports crude prices amid a state of uncertainty about the course of the conflict, according to Reuters.
In the same context, Trump indicated that the United States and Iran are conducting contacts at different levels, describing the new leaders in Tehran as “very rational,” at a time when Washington continues to strengthen its military presence in the region, while the Israeli army announced targeting government infrastructure in Tehran.
Brent crude is on track to record its largest monthly gain ever, rising 59% in March
Brent crude oil has risen by about 59% since the beginning of March, recording its largest monthly gains ever, exceeding the highs witnessed by the markets during the 1990 Gulf War, in light of the actual disruption of shipping traffic through the Strait of Hormuz, through which about a fifth of global oil and gas supplies pass.
The conflict, which began on February 28, expanded to include new areas in the Middle East, after the Houthis in Yemen launched their first attacks on Israel since the outbreak of the war, raising growing concerns about the security of vital shipping lanes in the Red Sea and Bab al-Mandab.
JPMorgan analysts, led by Natasha Caneva, said that the conflict is no longer limited to the Gulf region and the Strait of Hormuz, but has extended to include the Red Sea and Bab al-Mandab, one of the most important global corridors for flows of crude oil and refined products.
In this context, data from the Kpler data analysis company showed that Saudi crude oil exports that were diverted from the Strait of Hormuz to the port of Yanbu on the Red Sea amounted to 4.658 million barrels per day during the past week.
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