UAE Oil Spill Adds to Fears as Brent Nears $115

A tanker spill off Umm Al Quwain has added another worry to a market already on edge. Brent crude touched $115.16 a barrel on Friday, its highest price since May 4. The United Arab Emirates said it had found oil off its coast but had not identified the tanker or explained the spill’s cause. ¹

The unknown cause comes as Houthi attacks in Saudi Arabia raise fears of wider disruption to Middle East oil supplies. Saudi Aramco ordered staff to leave its headquarters in Dhahran on Thursday as fighting intensified. The Houthis, an armed movement based in Yemen and backed by Iran, have moved towards Bab el-Mandeb, a narrow sea passage used by ships entering the Red Sea.^1,7 The spill adds to concerns about exposed shipping routes.

Those routes matter because oil prices can rise before any major supply loss occurs. Traders consider the risk that attacks could disrupt production, ports or tanker traffic. Higher insurance and shipping costs also make deliveries more expensive. Brent was up 1.5% to $114.99 by 1300 GMT on Friday and was on track for a 4.4% weekly rise, its third straight weekly gain.¹ The UAE spill’s cause and size remain unconfirmed, so its direct effect on supply is not yet clear.

That supply uncertainty also reaches fuel buyers. India’s crude basket averaged $119.99 a barrel on Friday, well above the Reserve Bank of India’s $95 projection for the second half of the fiscal year. Meanwhile, Adani Total Gas raised CNG prices by ₹4.45 per kg.⁵ For now, oil traders will watch for updates from UAE authorities on the spill and for any further attacks or shipping disruption in the region. ¹