Brent crude oil price hits peak

After closing yesterday at $89.35, the price of a barrel of Brent crude oil rose by 1.53 percent today to reach $90.72. West Texas Intermediate (WTI) crude oil was trading at $86.79 per barrel. Consequently, oil prices have begun to hover at their highest levels since October 2023. 

The rise in prices was driven by supply concerns caused by geopolitical tensions and the depreciation of the US dollar against other currencies.

Israel continues its attacks on the besieged Gaza Strip. In response, the Houthis in Yemen are targeting ships linked to Israel in the Red Sea, one of the world's most frequently used maritime routes for oil and fuel shipments.

The US reported that it destroyed a Houthi unmanned surface vessel the day before yesterday. In response, Abdul-Malik al-Houthi, the leader of the Iran-backed Houthis in Yemen, stated yesterday, "We will not compromise on our position regarding the Palestinian cause, and we will not back down on this matter."

In Russia, production was partially halted at some oil refineries following drone attacks. Concerns that export capacity for Russian crude oil and refined products, which account for approximately 8 percent of global supply, could fall following the attacks continue to support prices upward.

The depreciation of the US dollar against other currencies is helping oil prices rise. A weaker dollar is expected to increase demand by making oil cheaper for those using other currencies. The US dollar index, which measures the value of the US dollar against other currencies, fell by 0.11 percent to $103.880.