Oil Prices Hit Five-Month High Above $112 for Brent on Houthi Attack Fears in Saudi Arabia

Crude oil prices reached their highest level since May on Thursday as new Houthi attacks in Saudi Arabia raised fears of a wider Middle East conflict.

Amid concern that supplies from one of the world's main oil-exporting regions could be disrupted, Brent crude futures rose $3.19, or 2.9 percent, to $112.01 a barrel by 1:11 p.m. GMT.

Earlier in the session, Brent had climbed to $112.68, its highest since May 18.

U.S. West Texas Intermediate rose $2.41, or 2.5 percent, to $99.56, after earlier touching $100.09.

Tamas Varga, an analyst at PVM Oil, said reports that Middle East crude exports had surpassed pre-conflict levels were outweighed by attacks on shipping in the Strait of Hormuz and Houthi attacks on Saudi Arabia and its oil infrastructure.

He added that there was no prospect of improvement before the U.S. midterm elections, raising the risk that oil prices would remain at high levels.

Morgan Stanley analysts noted that crude exports from the Middle East were about 17 million barrels per day last week.

The level of concern was also reflected on the ground. Six people said on Thursday that oil giant Saudi Aramco had instructed staff to leave its headquarters in Dhahran and work remotely.

Meanwhile, the U.S. State Department ordered some diplomats and their family members to leave its missions in Saudi Arabia.

U.S. officials also said there were plans to move family members of staff from several other U.S. missions in the Middle East.

The surge signals extra pressure for fuel-importing countries, as growing supply uncertainty tends to lift the risk premium in the market.

For now, traders and analysts will watch which direction the Middle East conflict takes, and whether the risk of attacks around the Strait of Hormuz and Saudi oil infrastructure recedes.