LONDON / ConSynSer / – Oil prices rose on Wednesday, October 21, with Brent crude futures climbing $1.21 to $110 per barrel, according to Reuters. US West Texas Intermediate crude also gained more than $1 to reach $99 per barrel. The move came during a volatile session driven by fresh attacks on shipping and energy sites in the Middle East. Traders weighed those risks against signs that crude flows from the Gulf are recovering. Brent is trading nearly 80% higher than a year ago.
Iran’s Revolutionary Guards said naval mines had halted three tankers using routes that Tehran considers unauthorized. The UK Maritime Trade Operations agency reported that a vessel was struck near Oman. Yemen’s Houthis claimed attacks on Saudi Aramco facilities in Yanbu and at the Shaybah oilfield. The group also claimed strikes on airports in Riyadh and Abha. The incidents renewed concern over supply routes through the Strait of Hormuz.
Prices swung sharply through the day. Brent pared its gains later in the session and fell below $108 at one point. WTI briefly touched $100 before wavering below $98. Record-high freight rates in the Persian Gulf continued to support prices. Brent has gained about 8% over the past month, according to Trading Economics data. Oil prices also rebounded in late September after a four-session decline.
Gulf export flows offset supply worries
US Secretary of State Marco Rubio said shipments through the Strait of Hormuz were approaching prewar levels. Tanker-tracking data from Kpler and Vortexa showed that Middle East crude exports have risen since the summer. Producers are increasing shuttle shipments through Hormuz and ship-to-ship transfers in the Gulf of Oman. Saudi crude exports rose 7.9% in August to their highest level since March. The recovering flows helped limit gains during Wednesday’s session.
US inventory data also influenced trading. The Energy Information Administration said US crude stocks fell by just over 3 million barrels last week. The American Petroleum Institute had reported a larger decline of 4.9 million barrels. US weekly crude production stood at about 13.27 million barrels per day, down from 13.68 million the previous week. Lower inventories point to tighter supply in the world’s largest oil-consuming country.
Russian diesel and Saudi attacks in focus
Russia was set to deliver its first diesel shipment to the United States on Thursday under an agreement between President Donald Trump and Russian President Vladimir Putin. Trump waived Russia sanctions under the Graham Act last week, clearing the way for the deal. Ukraine has launched large drone attacks on Russian oil infrastructure. Those strikes signal Kyiv’s intent to prevent Moscow from expanding diesel exports, according to Trading Economics.
Prices climbed again on Thursday, October 22, after a drone attack on Saudi Aramco’s Shaybah oil field killed two people. Brent rose above $111 per barrel, while WTI moved above $99. The United States also ordered some personnel and family members to leave its embassies in Saudi Arabia. Traders continue to monitor Gulf shipping, Saudi output and Russian fuel flows for the next direction in prices.