LONDON / ConSynSer / – On Wednesday, October 21, oil prices experienced an uptick, with Brent crude futures increasing by $1.21 to hit $110 per barrel, as reported by Reuters. Meanwhile, US West Texas Intermediate crude also gained over $1, reaching $99 per barrel. This movement occurred during a volatile trading session fueled by new assaults on maritime and energy sites across the Middle East. Investors balanced these risks against indications that crude oil shipments from the Gulf are gradually recovering. Brent has surged nearly 80% compared to the same period last year.
Iran’s Revolutionary Guards announced that naval mines had stopped three tankers from navigating routes that Tehran deems unauthorized. The UK Maritime Trade Operations agency reported a vessel being struck near Oman. Yemen’s Houthis claimed responsibility for attacks on Saudi Aramco installations in Yanbu and the Shaybah oilfield, along with assaults on airports in Riyadh and Abha. These events heightened concerns over supply routes passing through the Strait of Hormuz.
Throughout the trading day, prices fluctuated significantly. Brent pared some of its gains later in the session, falling below $108 at one point. WTI briefly reached $100 before slipping below $98. Elevated freight rates in the Persian Gulf continued to bolster prices. Over the past month, Brent has increased approximately 8%, based on data from Trading Economics. Oil prices also rebounded in late September after a four-session decline.
Gulf export flows counteract supply concerns
US Secretary of State Marco Rubio reported that shipments passing through the Strait of Hormuz are nearing prewar levels. Data from Kpler and Vortexa tracking tankers indicate that Middle East crude exports have been on the rise since summer. Producers are increasing shuttle shipments via Hormuz and engaging in ship-to-ship transfers in the Gulf of Oman. Saudi crude exports climbed 7.9% in August, reaching their highest point since March. These recovering flows helped limit the overall price gains during Wednesday’s trading session.
US inventory figures also played a role in influencing market movements. The Energy Information Administration revealed that US crude stocks decreased by just over 3 million barrels last week. The American Petroleum Institute had previously reported a larger drop of 4.9 million barrels. US weekly crude output was approximately 13.27 million barrels per day, down from 13.68 million the week before. Lower inventories suggest a tightening of supply in the world’s leading oil-consuming nation.
Russian diesel shipments and Saudi attacks in focus
Russia is scheduled to deliver its first diesel shipment to the United States on Thursday, following an agreement between President Donald Trump and Russian President Vladimir Putin. Trump waived Russia sanctions under the Graham Act last week, facilitating this transaction. Meanwhile, Ukraine has launched extensive drone strikes targeting Russian oil infrastructure, signaling Kyiv’s efforts to prevent Moscow from expanding diesel exports, according to Trading Economics.
On Thursday, October 22, prices climbed once again after a drone attack on Saudi Aramco’s Shaybah oil field resulted in two fatalities. Brent surpassed $111 per barrel, and WTI moved above $99. The United States ordered some personnel and their families to evacuate its embassies in Saudi Arabia. Market participants are closely monitoring Gulf shipping, Saudi production levels, and Russian fuel flows to determine the next direction for prices.