Oil tops $114 as traders brace for Iran escalation after US midterms
On Friday, BP posted its highest profits in 18 years as a result of the Iran conflict, which has driven up oil and gas margins.
Oil prices rose more than 3% on Friday, putting Brent crude on track for a fourth consecutive monthly gain, as traders braced for a potential escalation in the US-Iran war following next week’s US midterm elections. A reported attack on a tanker in the Strait of Hormuz added to upward pressure on prices, as disruption to the critical global energy shipping route continued.
Brent crude, the international benchmark, rose 3% to $114.12 a barrel, as of 11:03 a.m. EDT. For the month, Brent was on track to finish nearly 14% higher than at the end of September.
Energy companies are benefiting significantly from the rally, which is driven by uncertainty over Gulf oil supplies. BP on Friday reported its highest quarterly profit in 18 years, buoyed by the Middle East conflict, which has pushed up oil and gas margins. The UK-based energy giant's underlying replacement cost profit quadrupled to $8.46 billion from $2.2 billion a year earlier.
The quarterly result comfortably exceeded analysts' expectations of $7.3 billion and marked BP's highest profit since it reported $8.9 billion in October 2008.
