Oil prices settled higher on Wednesday and climbed further in extended trade after Iran attacked several energy facilities across the Middle East following a strike on its South Pars gas field, a major escalation in its war with the U.S. and Israel.
Brent futures were up 5.6 per cent in post-settlement trading, extending gains after settling up 3.8 per cent at $107.38. U.S. West Texas Intermediate crude extended gains to 4 per cent after closing up 11 cents, or 0.1 per cent, at $96.32.
WTI futures had settled at their widest discount to Brent in 11 years, as the U.S. benchmark was pressured by higher supply through a release from its Strategic Petroleum Reserve and rising freight costs. Brent futures, meanwhile, were buoyed by fresh attacks on Middle Eastern energy facilities.
Qatar’s state oil and gas company said the Ras Laffan Industrial City, an energy-industry hub, had suffered “extensive damage” after it was hit by Iranian missiles. Saudi Arabia said it had intercepted and destroyed multiple ballistic missiles launched toward Riyadh and an attempted drone attack on a gas facility in the east of the country.