Oil remains beyond $100 per barrel as Middle East supply concerns persist
As tensions escalate in the Middle East, particularly around the Strait of Hormuz, oil prices have surged amid fears of potential supply disruptions. Recent assaults on tankers heighten the danger of transporting crude through this vital corridor. Additionally, American crude inventories are dwindling, signaling a tighter market, while diesel and jet fuel stocks remain below average levels, a…
Oil prices continued to rise above $100 per barrel on Thursday due to increased worries over Middle Eastern supply amid heightened attacks on vessels in the Gulf and Strait of Hormuz. Brent crude reached $101.50 per barrel, marking a $1.32 increase or 1.32%, while WTI crude rose to $89.28, up by $1 or 1.13%. The gains occurred despite a dip in prices from the previous day, when the International Energy Agency pledged to expedite oil stock releases and prioritize diesel supplies to address record fuel prices and disruptions stemming from the ongoing Iran conflict.
Shipping through the Strait of Hormuz has become a growing concern as tensions between the US and Israel continue to escalate, leading to a potential threat to global oil and fuel supplies. The route currently handles about 20% of the world's oil and fuel shipments, with tensions spiking as the conflict enters its eighth month. The number of tanker attacks through the Strait has reached their highest level since the start of the Iran war, causing casualties and heightened risks for cargoes and crew.
The pressure on shipping has intensified even as Gulf producers have increased exports. A tanker off the coast of Qatar was recently hit by multiple projectiles, leading to casualties, according to the UK Maritime Trade Operations Agency. Supply concerns were compounded by indications of tighter US inventories. American crude stocks decreased by 3.2 million barrels in the week ending October 2 to 424.1 million barrels, surpassing the 1.7 million-barrel decline forecast by analysts in a Reuters poll.
Diesel and jet fuel inventories also fell, with distillate fuel stocks dropping by 42,000 barrels to 105.14 million barrels, remaining below their yearly averages for this period over the past five years.
Oil markets have remained volatile for over seven months since the Middle Eastern conflict began, even with the latest price increase. However, prices are still below the $126 per barrel level reached earlier in the crisis.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
