“The step-up in attacks on ships highlights how the current equilibrium in the oil market is fragile and could easily be shattered,” said Hamad Hussain, a senior economist at Capital Economics. “This would especially be the case if there is further escalation and energy infrastructure is targeted.”
Brent, the international oil benchmark, settled Friday at $102.25 a barrel, up nearly 5% for the week. Hussain said traders were pricing in a substantial risk that flows would fall again. Capital Economics expects Brent to remain around $100 through the end of the year.
