Oil hits $100 after Houthi attack on Saudi tankers worsens oil supply disruption

By Anushree Mukherjee

July 23 (Reuters) - Oil prices deed their highest successful astir 2 months connected Thursday, rising for a 5th time aft Yemen's Houthis said they struck 2 Saudi lipid tankers, widening ‌disruption to planetary lipid shipping done some the Red Sea and the Strait of Hormuz.

Brent crude futures ‌were up by $5.83, oregon 6.2%, astatine $99.90 a tube by 1310 GMT aft reaching $100 a tube for the archetypal clip since precocious May.

U.S. West Texas ​Intermediate crude roseate $4.41, oregon 5.08%, to $91.24, exceeding $90 a tube for the archetypal clip since June 11.

"The contiguous outlook for crude lipid remains supportive arsenic markets terms a worrying probability of proviso interruptions successful a 2nd chokepoint," said Pepperstone probe strategist Ahmad Assiri.

Besides the renewed struggle implicit power of the Strait of Hormuz, Yemen's Houthis person opened a caller beforehand by ‌targeting vessels carrying Saudi lipid successful the ⁠Bab el-Mandeb strait aft stating they would enforce a naval blockade connected shipments from Saudi Arabia.

Houthi militia attacked 2 Saudi Arabian lipid tankers successful a subject operation, the radical said ⁠on Thursday, with a Saudi quality bureau aboriginal confirming 1 of the 2 vessels was ablaze aft an battle portion sailing successful the Red Sea.

Goldman Sachs said Brent mightiness transcend $120 a tube successful the 4th fourth and mean $100 adjacent twelvemonth if ​the Strait ​of Hormuz remains disrupted done 2027, with further upside if ​the Bab el-Mandeb strait and Suez Canal besides ‌suffer persistent disruption.

Iran's Revolutionary Guards said an lipid tanker caught occurrence aft an detonation portion attempting to travel a mined way successful the confederate country of the Strait of Hormuz adjacent the seashore of Oman and that 2 others had turned back.

The Guards said the strait was nether their power and "completely closed" portion U.S. actions continued successful the region, informing that nary tanker would beryllium allowed to participate oregon permission without coordination with Iran.

The U.S. subject said ‌it had completed a 12th consecutive nighttime of attacks connected Iran, ​hours aft U.S. President Donald Trump vowed to destruct an Iranian ​bridge oregon powerfulness works each clip Iran shoots ​at a vessel successful the Strait of Hormuz.

Goldman expects lipid prices to clasp astir of ‌their caller gains done July and August arsenic ​global inventories proceed to decline, ​supported by little Middle East production, seasonal summertime question request and a crisp slowdown successful releases of strategical petroleum reserves.

Meanwhile, European diesel margins deed a grounds $66.25 a tube connected July 17, supported by Russia's diesel ​export prohibition pursuing repeated Ukrainian attacks connected ‌its refineries and concerns implicit further disruptions to Middle East supplies, and traded arsenic precocious arsenic $65.30 ​a tube connected Thursday.

(Reporting by Enes Tunagur successful London, Trixie Yap and Florence Tan successful Singapore ​and Anushree Mukherjee successful BengaluruEditing by Elaine Hardcastle, Kirsten Donovan)