Brent's expiring December contract settled at $117.64 a barrel Friday, its highest close since April, as traders assessed threats to regional oil shipments after an attack on a tanker near Oman.
Reuters reported the December contract gained $2.76, or 2.4%, before expiring. January Brent, the more actively traded contract, ended at $113.43, up $2.63. U.S. West Texas Intermediate (WTI) crude rose $2.12, or 2.08%, to settle at $104.12.
Reuters said Brent gained 13.6% in October and WTI rose 15.2%. The October advance marked a fourth consecutive monthly gain for each benchmark, the news agency reported.
The United Kingdom Maritime Trade Operations (UKMTO) said the incident was reported at 6:12 p.m. EDT (22:12 UTC) Oct. 29, 25 nautical miles northeast of Khasab, Oman. The tanker was outbound when a small craft drew alongside its port side and secured two explosive devices to the hull above the waterline, the agency said.
The blasts caused an engine-room fire and temporarily disabled the vessel. UKMTO said the fire was extinguished, crew members were safe and no environmental impact was reported. The tanker continued toward its next port, and the agency advised other ships to transit cautiously and report suspicious activity. UKMTO's update did not name the vessel or identify who was responsible.
Reuters also described the strait as a key route for Gulf crude and fuel shipments.
Dennis Kissler, BOK Financial's senior vice president of trading, told Reuters that traders would monitor Middle East oil flows and the likelihood of escalation by U.S. and allied forces.
Reuters reported that traders were also watching the U.S. midterm elections scheduled for Tuesday, Nov. 3, as a potential source of market volatility.
