Oil Heads for Fourth Monthly Gain on Middle East Escalation Fears; Brent at $116.56

Crude oil prices were set for another weekly gain and a fourth consecutive monthly rise on continued fears of escalation in the Middle East and Houthi attacks on Saudi infrastructure. Brent crude traded at $116.56 per barrel and West Texas Intermediate at $103.35, ahead of the November 3 U.S. midterm elections. President Trump has repeatedly suggested the U.S. could resume strikes against Iran after the elections, and media have reported that Washington and Israel are coordinating on such strikes. Brent has gained 11% this month and WTI 14%, according to Reuters. Since the end of June, Brent has risen more than $40 per barrel and WTI about $34. Reports of attacks on tankers in the Strait of Hormuz and fresh Houthi strikes on Saudi oil facilities reinforced bullish sentiment. "Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated," said Saul Kavonic, MST Marquee's head of energy research. Saxo Bank's Ole Hansen said regional crude exports remain resilient but the market fears further attacks could damage infrastructure.