Brent crude hit $112.2 a barrel on Thursday, March 19, a gain of $4.84, or 4.51%. Murban, the Abu Dhabi benchmark, did even better, reaching $116.8 after a rise of $5.84, or 5.26%.
Gulf News tied the move to the conflict involving Iran and disruptions along shipping routes, the Strait of Hormuz in particular. Reports of threats or incidents involving Iranian energy infrastructure added to the worry about supply.
Where the benchmarks stood
West Texas Intermediate traded at $97.24, up $0.92, or 0.96%. Natural gas rose $0.113, or 3.69%, to $3.178 per MMBtu. Gulf News called that a smaller jump than oil’s.
The headline figures did not all agree. One Gulf News heading put Brent at $107.4, up 3.8%. Cross-checks during Asian trading found it between $107 and $110, with Murban at roughly $116 to $117 and WTI around $98 to $99.
Early on Thursday the gap between Brent and WTI widened, and Middle East grades such as Murban outperformed on regional risk premiums.
A month-long rally
The day’s gains extended a month of rising prices. Brent was up more than 50% over some stretches, driven by fears of disrupted supply from hostilities in the Middle East, attacks on facilities and halted tanker traffic through the chokepoint near Iran.
Prices have briefly spiked above $100 to $120 before partly pulling back. Emergency stock releases gave only short-term relief, the paper said.
Gulf News flagged inflation, higher costs for consumers and possible demand destruction if prices stay high. Markets remain highly volatile, it said, and developments in the region will likely drive the short-term direction.
