Oil extends gains as Middle East supply fears grow

SINGAPORE

Oil prices rose further above $100 a barrel on Sept. 11 as attacks on shipping in the Middle East raised concerns about prolonged supply disruptions.

Brent crude futures gained 1 percent to $108.68 a barrel in early trading, while U.S. West Texas Intermediate rose 1 percent to $103.45. Both benchmarks had climbed more than 6 percent the previous day.

Iran said it attacked 10 ships near the Strait of Hormuz on Sept. 9 following U.S. strikes on five Iranian oil tankers. Its Islamic Revolutionary Guard Corps warned it would step up its response to further attacks.

Meanwhile, the U.S. Energy Information Administration (EIA) raised its oil price forecasts for this year and next, citing restrictions on Middle Eastern exports and increased production cuts.

In its September Short-Term Energy Outlook, the agency forecast Brent would average $91.01 a barrel in 2026, up from $86.81 projected last month.

For 2027, it raised its Brent forecast to $73.74 from $69.39 and its WTI forecast to $69.74 from $65.39.

Brent averaged $91 a barrel in August, up $7 from July, as constraints on exports forced producers in the Middle East to cut more output, the agency said.

The EIA estimated that global oil inventories had fallen by about 400 million barrels so far this year. It expects stocks to decline further through the end of 2026, keeping prices elevated.