Crude futures surged above $111/bl in early trading Monday, after a weekend of continued attacks and growing signs of oil supply disruptions in the Middle East.
The front-month May Ice Brent contract surged to $111.04/bl shortly after trading began in Asia, up by 19.8pc or $18.35/bl from the close on 6 March.
US benchmark WTI rose even more sharply. The front-month April contract hit a high of $111.24/bl, a gain of 22.4pc or $20.34/bl from Friday's close.
Today's new highs mean futures have now risen by over 50pc since 27 February, the day before the US-Iran war started.
Kuwait's state-owned oil firm KPC said on 7 March it has started to reduce crude output and refinery runs after oil exports were effectively halted by the war.
Kuwait is the second Mideast Gulf country to confirm production shutdowns because of the war. Upstream shutdowns are also expected in Saudi Arabia, the UAE, Qatar and Iran should the war continue.
There was no sign of an end to the conflict in the Middle East, which has now lasted for nine days. Israel struck fuel storage tanks in Iran, causing a huge fire, while Iran continued to fire drones and missiles at Israel and US allies in the region.
