LONDON / ConSynSer / – On Wednesday, October 21, oil prices experienced an increase, with Brent crude futures rising by $1.21 to reach $110 per barrel, according to Reuters. Meanwhile, US West Texas Intermediate crude also increased by over $1, hitting $99 per barrel. The movement occurred during a turbulent trading session driven by renewed attacks on shipping and energy facilities in the Middle East. Market participants weighed these threats against signs that crude shipments from the Gulf are rebounding. Brent has risen nearly 80% compared to a year earlier.
Iran’s Revolutionary Guards claimed that naval mines had halted three tankers navigating routes Tehran deems unauthorized. The UK Maritime Trade Operations reported a vessel struck near Oman. Yemen’s Houthis announced attacks on Saudi Aramco sites in Yanbu and the Shaybah oilfield. They also claimed hits on airports in Riyadh and Abha. These events reignited concerns over supply channels through the Strait of Hormuz.
Throughout the day, prices exhibited sharp fluctuations. Brent’s gains diminished later, dropping below $108 at one stage. WTI briefly touched $100 but then slipped below $98. The continued high freight rates in the Persian Gulf provided ongoing support for prices. Over the past month, Brent has gained about 8%, according to Trading Economics data. Oil prices also rebounded in late September after a four-session decline.
Gulf export volumes help counter supply concerns
US Secretary of State Marco Rubio indicated that shipments via the Strait of Hormuz are nearing prewar levels. Data from Kpler and Vortexa tracking tankers showed that Middle Eastern crude exports have increased since summer. Producers are boosting shuttle shipments through Hormuz and conducting ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports rose 7.9% in August, reaching their highest since March. These recovering flows helped limit price gains during Wednesday’s trading session.
US inventory reports also influenced market movements. The Energy Information Administration reported a slight decrease of over 3 million barrels in US crude stocks last week. The American Petroleum Institute reported a larger decline of 4.9 million barrels. US weekly crude production was about 13.27 million barrels per day, down from 13.68 million the previous week. Reduced inventories suggest a tighter supply situation in the world’s largest oil-consuming country.
Focus on Russian diesel shipments and Saudi attacks
Russia planned to deliver its first diesel shipment to the United States on Thursday, following an agreement between President Donald Trump and President Vladimir Putin. Trump waived Russia sanctions under the Graham Act last week, paving the way for the deal. Meanwhile, Ukraine has launched extensive drone attacks on Russian oil infrastructure. These strikes indicate Kyiv’s effort to prevent Moscow from expanding diesel exports, according to Trading Economics.
On Thursday, October 22, prices rose again after a drone attack on Saudi Aramco’s Shaybah oil field killed two people. Brent surpassed $111 per barrel, and WTI moved above $99. Additionally, the US ordered some personnel and family members to leave its embassies in Saudi Arabia. Market watchers remain focused on Gulf shipping, Saudi oil output, and Russian fuel flows as they attempt to gauge the next move in prices.