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Oil is surging after a suspected torpedo attack on 2 tankers in the Gulf of Oman

Business Insider | Jun 13, 2019, 03.56PM IST

Oil tanker

News Agency Of The (IRIB) Islamic Republic of Iran Broadcasting (iribnews)

Photo of the smoking tanker from the News Agency Of The (IRIB) Islamic Republic of Iran Broadcasting (iribnews)

  • The price of oil surged on Thursday after a suspected torpedo attack on two tankers in the Gulf of Oman.
  • West Texas Intermediate crude jumped 3%, while Brent crude jumped 3.8%.
  • Oil was previously trading at five-month lows, reflecting a glut of US crude and concerns that the US-China trade war could weaken global economic growth and temper demand for oil.
  • Watch oil trade live.

The price of oil surged on Thursday after a suspected attack on two tankers in the Gulf of Oman.

One of the vessels, Front Altair, was "suspected of being hit by a torpedo," according to the Associated Press, citing Taiwan's state oil refiner CPC Corp, which chartered the vessel.

West Texas Intermediate crude jumped 3% to $52.70 a barrel, while Brent crude jumped 3.8% to $62.04. Oil was previously trading at five-month lows, reflecting a glut of US crude and concerns that the US-China trade war could weaken global economic growth and temper demand for oil.

The Gulf of Oman feeds into the Strait of Hormuz, a key transit route for a fifth of global oil supplies.

US crude oil inventories grew by 2.2 million to about 486 million last week, according to the Energy Information Administration. The increased stockpile will "ultimately be more important than what's happened in Oman," said Neil Wilson, chief market analyst for Markets.com.

The US accused Iran of using mines to attack four oil tankers off the Emirati port of Fujairah last month, but Iran denied any involvement, according to the AP.

Get the latest Oil WTI price here.

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