Oil prices rise over 2% due to Iranian tanker hit

Oil prices jumped by more than 2 percent on Friday after an Iranian oil tanker in the Red Sea was hit by two suspected rockets off the coast of Saudi Arabia, raising the possibility of supply disruptions from a crucial producing region.

Iranian Press TV reported that the oil tanker Sinopa, owned by the National Iranian Oil Co, was struck off the coast of the Saudi Arabian city of Jeddah. The ship suffered heavy damage and was leaking oil into the water, unnamed sources told Iran’s Students News Agency ISNA.

International benchmark Brent crude futures rose as much as 2.3 percent to $60.46 a barrel and were at $60.13 per barrel, up $1.02, by 06:48 GMT.

US West Texas Intermediate (WTI) crude futures rose as much as 2.1 percent to $54.69 a barrel and were at $54.47 per barrel, up 92 cents.

“Spare capacity remains fragile and with supply chain vulnerability a worrying concern at virtually every Middle East oil field, traders continue to hedge supply risk premium,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.

source: Al Jazeera