Oil Prices Rise as Tanker Costs Surge 12-Fold in Middle East Supply Rerouting

Oil prices rose nearly 2% on Thursday after deadly attacks on Saudi targets revived supply concerns from the Middle East, with Brent futures climbing 1.77% to $110.75 per barrel and US West Texas Intermediate gaining 1.47% to $98.58. Gulf exporters have restored volumes above pre-war averages by rerouting and deploying extra tankers, but shipping costs have surged dramatically, with a vessel carrying two million barrels earning about $1.4 million per day, more than 12 times pre-war levels. Insurance costs have also risen to roughly 10% of cargo value, up from about 3% previously. US crude inventories fell by 3.06 million barrels last week, while Goldman Sachs forecasts Brent at $90 in December, suggesting the geopolitical premium may fade if supply recovery continues.