Oil prices remained above $105 per barrel on Wednesday as fresh attacks on commercial vessels in the Strait of Hormuz heightened concerns over global energy supplies and shipping security.
As at 9:36 a.m. Nigerian time, Brent crude futures traded at $105.60 per barrel, down 0.07 per cent, while US West Texas Intermediate (WTI) crude rose 0.04 per cent to $94.18, according to OilPrice.com data.
The prices followed reports by the United Kingdom Maritime Trade Operations (UKMTO) that a container ship and an oil tanker were struck by unidentified projectiles in separate incidents in the strategic waterway on Tuesday.
UKMTO did not disclose the extent of the damage or confirm the exact times of the incidents. It advised vessels to transit the area cautiously and report suspicious activity.
The latest incidents add to an intensifying wave of attacks on commercial shipping in the region. The Financial Times reported that 24 vessels were attacked in the two weeks leading to October 11, including 18 between October 1 and 11. Six ships were targeted on October 11 alone, according to UKMTO data.
Two senior Iranian officials told Reuters that Tehran had adopted different offensive tactics against vessels it considered to have violated its restrictions about 10 days earlier, contributing to the increase in attacks.
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The escalation has raised concerns among shipowners, energy traders and governments over the safety of commercial shipping through one of the world’s most important energy corridors.
The Strait of Hormuz handled about a fifth of global oil supplies before the conflict. Data from Kpler cited in the report showed that oil flows through the waterway averaged 15.5 million barrels per day in September before falling sharply amid the latest disruptions.
Tanker rates have also come under pressure, increasing the cost of transporting crude oil and other petroleum products.
For Nigeria, sustained increases in crude prices, freight charges and war-risk insurance premiums could raise the cost of importing petrol and diesel. However, domestic fuel prices will also depend on exchange rates, refinery pricing and product availability.
The supplied market figures put Dangote Refinery’s petrol gantry price at N1,350 per litre and automotive gas oil at N1,800 per litre.
Oil price movements are expected to remain sensitive to further attacks, the security of energy infrastructure in the Gulf and the ability of commercial vessels to navigate the Strait of Hormuz safely.
A prolonged disruption could sustain pressure on global crude prices, shipping costs and fuel markets.
