Brent crude futures settled at $116.72 a barrel on Friday, up $3.55 or 3.14%, the highest settlement since late April and a gain of about 6.2% on the week. US West Texas Intermediate closed at $103.27 a barrel, up 3.8%, after Brent briefly topped $117 during the session.
The rally followed fresh Houthi claims of attacks on Saudi energy, airport and military sites, including an Aramco facility at Yanbu, the Shaybah oilfield and airports in Riyadh and Abha. Production and export flows through the Strait of Hormuz were still reported near pre-conflict levels, but shipping rates stayed elevated as traders priced in a larger risk premium.
The US Department of Energy also authorised an emergency exchange of up to 400,000 barrels from the Strategic Petroleum Reserve to address a supply disruption at a Louisiana refinery. For Pakistan, dearer crude feeds straight into the import bill and, with a lag, into domestic pump prices.
Sources: The National, Reuters. Written in our own words for information only.