Crude oil futures were higher during mid-morning trade in Asia Monday as ongoing global trade and geopolitical tensions continued to provide support for prices. At 10:58 am Singapore time (0258 GMT), ICE Brent August futures rose 17 cents/b (0.27%) from Friday’s settle at $62.18/b, while the NYMEX July light sweet crude futures contract was up 10 cents/b (0.19%) at $52.61/b.
Saudi Arabia’s crown prince Mohammed bin Salman called for a “decisive” stand from the international community against Iran, which he blamed for recent attacks on oil tankers in the Gulf of Oman and facilities in the kingdom. In an interview with Saudi-owned Ashraq Al Awsat newspaper published on Sunday, the crown prince said the kingdom does not want a war in the region but “will not hesitate in dealing with any threat to our people, sovereignty and vital interests.”
The comments from the Saudi crown prince and the oil minister come after two oil product tankers were allegedly attacked in the Gulf of Oman on Thursday, pushing oil prices higher and raising fears about the security of energy supplies in the region. No one has claimed responsibility for the attack, the second in nearly a month when four tankers, two Saudi-owned, one UAE-flagged and another from Norway, were hit in the Gulf of Oman.
“This is something my government takes very seriously and we intend to take every measure we can to protect our infrastructure, our own territorial waters, our own ships,” Saudi energy minister Khalid al-Falih said on Saturday. “But we cannot protect the seas of the world, and therefore this is a connected global responsibility, ” Falih added.
Falih also said that the oil market was well supplied, although concerns about geopolitical risks remained high.