Oil price rises after Iranian tanker attack
Reports from Iranian media that a state-owned oil tanker had been struck by missiles in the Red Sea led to a jump in oil prices.
The missile attack on the Iranian Suezmax crude tanker Sabiti led to a rate as high as $60.65 a barrel in mid-morning trading.
Both oil benchmarks recorded their biggest daily rise since September 16, after the attacks on two Saudi Aramco facilities which temporarily cut the kingdom’s crude output by half and pushed prices up by about 20%.
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The International Energy Agency (IEA) stated that global oil markets actually face oversupply next year because of global demand slowing and a quick recovery from the Saudi attacks.
Troubled economic prospects for 2020 prompted the IEA to reduce its forecast for oil demand growth by 100,000 barrels per day to 1.2 million. This bearish forecast has caused crude prices to level off as investors look to the future.