Oil rises as focus turns to geopolitical tension

Beijing — Crude oil futures rose on Monday as geopolitical tension over the disappearance of a prominent Saudi journalist stoked worry about supply, although concern about the long-term outlook for demand dragged on prices.

Crude markets were also supported in the wake of data that showed South Korea did not import any oil from Iran in September for the first time in six years, before US sanctions against the Middle Eastern country take effect in November.

Brent crude had risen $1.01, or 1.26%, to $81.44 a barrel by 4.24am GMT, on track for its biggest daily gain since October 9.

US crude futures climbed 80c, or 1.12%, to $72.14 a barrel, extending gains they racked up on Friday after hefty losses on Wednesday and Thursday.

“The market has again expressed concerns over geopolitical tensions in the Middle East after US and Saudi traded comments over the disappearance of the Saudi journalist, leading to a jump in prices,” Wang Xiao, head of crude research with Guotai Junan Futures, wrote in a research note.

Saudi Arabia has been under pressure since Jamal Khashoggi, a prominent critic of Riyadh and a US resident, disappeared on October 2 after visiting the Saudi consulate in Istanbul.