Oil Prices Rise Above $102 as Middle East Supply Concerns Persist

Reuters

Oil prices.

Oil prices rose on Thursday as concerns over potential supply disruptions in the Middle East increased amid a rise in attacks on shipping in the Gulf and the Strait of Hormuz.

Brent crude futures rose $2.28, or 2.28%, to $102.28 a barrel, while US West Texas Intermediate (WTI) crude gained $1.66, or 1.88%, to $89.94, according to Reuters.

The latest gains came as attacks on oil tankers and other commercial vessels in the Gulf and Strait of Hormuz increased, raising concerns over the security of a major route for global energy shipments. Reuters reported that the number of vessels passing through the Strait fell to its lowest level in more than two months on 6 October.

Crude oil flows through the Strait declined by 27% to around 10.1 million barrels per day, equivalent to about 74% of pre-conflict levels, according to shipping data cited by Reuters. However, increased exports through alternative routes helped keep overall Middle Eastern crude exports around pre-conflict levels.

The market is also monitoring the impact of Hurricane Isaias on US energy production. Several oil and gas companies have suspended offshore operations in the Gulf of Mexico as the storm approaches the US Gulf Coast.

Around 25% of US Gulf oil production and 16% of natural gas production had been shut in by Wednesday, according to US government data cited by Reuters.

US crude inventories also fell by 3.2 million barrels last week, exceeding analysts’ expectations and providing additional support to oil prices.

Meanwhile, the International Energy Agency has moved to accelerate the release of emergency oil stocks and prioritise diesel supplies as governments respond to disruptions and elevated fuel prices.

Oil markets remain focused on developments in the Middle East, the security of shipping routes and the potential impact of weather-related disruptions on global supplies.


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