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Oil prices rose further in global markets on fears of disruptions to Middle Eastern supplies and potential attacks on Saudi Arabia’s energy infrastructure. Concerns over the safety of shipping through the Red Sea and surrounding waterways also contributed to the increase, Reuters reported.
On Wednesday (October 21), Brent crude futures rose 85 cents, or 0.78%, to $109.64 a barrel.
At the same time, US West Texas Intermediate (WTI) crude gained 76 cents, or 0.78%, to $98.58 a barrel.
According to the Reuters report, concerns intensified following reports that a massive oil tanker caught fire after being struck by a sea mine south of the Strait of Hormuz. The naval arm of Iran’s Islamic Revolutionary Guard Corps claimed that the vessel had violated Iranian regulations.
According to shipping intelligence firm Kpler, at least 18 vessels have been attacked over the past two weeks.
Market analysts said the threat to shipping was no longer confined to the Strait of Hormuz. As the risk has spread to the Gulf of Oman, concerns are mounting that oil transportation and supply operations from the Middle East could face disruptions.
Meanwhile, Yemen’s Houthi rebels on Monday claimed responsibility for attacks on Saudi Aramco’s Yanbu facility, the Shaybah oilfield, and the airports in Riyadh and Abha. Reports of the attacks have heightened concerns over the security of Saudi Arabia’s energy infrastructure.
Earlier, on Tuesday (October 20), Iran’s President Masoud Pezeshkian met Pakistan’s army chief in Tehran, with discussions reportedly focusing on mediation efforts. Oil prices fell in the previous session following the news.
At the close of trading on Tuesday, Brent crude fell 76 cents, or 0.69%, to $108.79 a barrel. Prices had earlier climbed to a five-month high of $111.99 a barrel. Meanwhile, US WTI crude futures for November delivery, which expired that day, settled $1.87, or 1.8%, lower at $101.79 a barrel.
Separately, according to forecasts from eight analysts surveyed by Reuters, US crude inventories may have fallen by around 800,000 barrels in the week ended October 16. Inventories of refined fuels are also expected to have declined, potentially adding to pressure on the United States. Source: Reuters.
