Oil prices surged again on Thursday, with Brent crude briefly rising above $108 per barrel for the first time since May. US crude also climbed past $102 per barrel.
Brent crude ended the session at $107.63 per barrel. It gained 6.3% during the day.
US West Texas Intermediate (WTI) crude closed at $102.48 per barrel. The benchmark rose 6.7%, reaching its highest closing level since May.
Since the beginning of the year, both Brent and WTI have gained more than 75%.
Analysts at ING said the rise reflects continued concerns over geopolitical risks. They said tensions in the Persian Gulf show no credible path toward de-escalation.
Petrol, Diesel Prices Hit New Records as Fuel Rates Rise Again in Pakistan
The surge has also pushed fuel costs higher. The average US gasoline price increased by five cents overnight to $4.27 per gallon.
Diesel prices rose by four cents to $5.98 per gallon. Diesel powers major parts of the transport, farming and rail sectors.
A major factor behind Thursday’s move was US President Donald Trump’s comments about Iran. Speaking in Dallas on Wednesday, Trump said he was not seeking a deal with Tehran.
Trump also said he did not expect oil prices to decline until shortly after the November midterm elections.
“Right after the election, oil prices are going to be tumbling downward,” Trump told reporters.
His comments have raised concerns that the conflict could continue for months. That prospect has increased fears about disruption to global crude supplies.
Commodities experts have warned that Brent crude could reach $120 per barrel if the stalemate with Iran continues. Some forecasts have placed the potential peak as high as $150.
The prolonged conflict could further tighten global oil supplies. It could also keep fuel prices elevated and increase pressure on consumers and businesses worldwide.
