By Sabiu Abdullahi
Global oil prices surged past the $100-per-barrel mark on Thursday after reported attacks on oil tankers in the Red Sea heightened concerns over disruptions to international energy supplies.
Brent crude, the global benchmark, gained 6.9 percent to trade at $100.60 per barrel. United States West Texas Intermediate (WTI) crude also rose by 5.63 percent to $91.72 per barrel.
Reuters reported that the rally followed attacks by Yemen’s Houthi movement on two Saudi oil tankers. The incidents have raised fears over the security of oil shipments through the Red Sea and the Strait of Hormuz, two of the world’s most strategic maritime routes.
The Houthi group confirmed that it carried out the operation against the two Saudi vessels. A Saudi news agency also reported that one of the tankers caught fire after it came under attack while sailing in the Red Sea.
The latest escalation came after the Iran-backed Houthis announced on Tuesday that they would target vessels transporting Saudi oil through the Bab el-Mandeb Strait. The group also declared a naval blockade against Saudi Arabia.
Meanwhile, the United States military said on Wednesday that it conducted its 11th straight night of strikes on Iran.
The increase in crude oil prices could boost earnings for oil-producing countries such as Nigeria. However, it may also push up the cost of petroleum products and slow recent progress in easing inflation.
Reflecting the changing market conditions, Dangote Petroleum Refinery on Thursday raised its ex-gantry price of petrol from ₦1,075 to ₦1,215 per litre.
The refinery also resumed the sale of petrol in naira.
