Crude Prices Surge Amidst Red Sea Attacks and Hormuz Deal Hopes

This week’s trading session of crude oil highlighted the delicate balance between supply and demand. The recent escalation, triggered by Houthi attacks on Saudi Arabia's export route in the Red Sea, caused a Brent price increase of around 3.5%, pushing it to its highest level since mid-September. Meanwhile, WTI finished near $94.50 after experiencing a 13% decline over six consecutive sessions. Although talks of a phased US-Iran deal regarding Hormuz have temporarily alleviated concerns about the Strait's disruption, the reality is that attacks on the Yanbu export infrastructure continue to have significant impact. The Yanbu route for Saudi Arabia is crucial as an alternative to the Hormuz Strait and such attacks are considered more severe than those targeting the strait itself. Additionally, the high diesel prices and potential US restrictions on diesel exports continue to pressure refining margins even during days when crude oil prices ease. Nevertheless, the prospect of a phased agreement remains the biggest uncertainty for the market. Source original: ForexLive (InvestingLive).