Oil prices whipsaw as markets weigh Middle East turmoil against uncertain demand

Oil prices seesawed up and down Tuesday, as energy markets weighed fresh Middle East turmoil against weaker-than-expected economic data.

After jumping by as much as 5%, U.S. crude prices closed down 2%, at less than $102 a barrel. International Brent crude prices swung between a low of around $105 a barrel to a high of nearly $112.

Initially, there were several factors pushing up the cost of crude, which later gave way to forces pushing it lower. During the past two weeks, at least 18 ⁠vessels have been attacked in the strait, the ship-tracking group Kpler said in a report Monday.

The cost of chartering a large tanker vessel to transport oil through the Strait of Hormuz has now quadrupled since September as a result. Much of that increase is a risk premium covering the price of increasing safety for vessel crews, and the cost of insurance.

This higher cost of transport has outweighed the recent bump in supply from a growing number of ships moving through the strait that would otherwise help push prices back down.

Iranian attacks on ships have also prompted investor speculation that the Trump administration will be more likely to escalate against Iran after the…

Original source: https://www.nbcnews.com/world