Oil prices surged on Thursday following an incident in the Sea of Oman, where an oil tanker reportedly caught fire.
According to Bloomberg, the Norwegian oil tanker Front Altair owned by Frontline had loaded oil in Abu Dhabi before it sent a distress signal to a port in the United Arab Emirates. A second vessel involved in the incident appears to be the Panama-flagged Kokuka Courageous which was traveling from Saudi Arabia to Singapore.
The United Kingdom Maritime Trade Operations (UKMTO) said it is “aware” of the incident and that an investigation is underway, urging “extreme caution.” The Gulf of Oman was the site of a previous incident with oil tankers, when the UAE said four commercial vessels were targeted by “sabotage operations.”
West Texas Intermediate futures for July settlements leaped 2.57%, changing hand for $52.69 per barrel at 1:54 am GMT while international benchmark Brent for settlements in August climbed 3.05% at the same time, going for $61.71 per barrel.