Attacks, turmoil and violence sent crude climbing $4 in U.S.

The turmoil in the Middle East is growing daily and as a result crude oil prices are growing along with each new development as Iran and the U.S. continue almost daily exchanges of attacks.

Crude oil jumped more than $4 a barrel in the U.S. and about $3 a barrel internationally.

Brent crude, the global benchmark, finished at $108.64 a barrel following a gain of $2.96 or 2.80%.

West Texas Intermediate crude, the US standard, closed at $105.84 a barrel on the New York Mercantile Exchange with a gain of $4.45 or 4.39%.

Here are events that are affecting the price of oil, which in turn affects gasoline and diesel fuel prices.

Despite the official Iranian view reiterated last week that it “does not control the Houthis [in Yemen]”, it was senior Islamic Revolutionary Guard Corps (IRGC) commanders in Tehran who ordered the 8 September attacks on Saudi Arabia, while several IRGC officers and men on the ground in Yemen coordinated the strikes, a senior source in the European Union’s (EU) energy security complex exclusively told OilPrice.com.  It is called the Makkah Defense Alliance.

U.S. Energy Secretary Christ Wright said Tuesday that Saudi Arabia’s East-West oil pipeline could be back in service within days after being damaged in attacks by the Houthis.

Europe will feel the impact too as Saudi Aramco has canceled or delayed crude deliveries to European refiners after the shutdown of the kingdom’s East-West pipeline cut into one of its remaining routes around the Strait of Hormuz.

Libya’s National Oil Corporation is threatening to declare force majeure after members of the security force assigned to protect the country’s oil infrastructure shut a pipeline valve and halted production at two fields.

Three of Russia’s six largest diesel-producing refineries are now either shut or operating at roughly one-quarter capacity after Ukrainian drone attacks damaged plants that together form the backbone of the country’s fuel system.

Natural gas prices finished up $0.036 or 1.24% at $2.932 MMBtu.

Most Oklahoma energy stocks recorded losses or no gains on Tuesday. Mach Natural Resources closed down more than 10% while Devon Energy and Empire Petroleum each had gains of 4%.