Global oil rises as Middle East supply concerns persist amid shipping attacks
Oil prices rose as escalating attacks on shipping in the Gulf and Strait of Hormuz heightened concerns over Middle East crude supplies, while falling US inventories and hurricane-related production cuts added further support.
Global oil prices rose on Thursday as renewed attacks on shipping in the Gulf and the Strait of Hormuz heightened concerns about crude supplies from the Middle East, while falling US inventories added further support to the market.
Brent crude futures climbed USD 2.28, or 2.28%, to USD 102.28 a barrel, while US West Texas Intermediate (WTI) crude gained USD 1.66, or 1.88%, to USD 89.94.
The latest gains came despite efforts by the International Energy Agency (IEA) to ease supply pressures through accelerated releases of emergency oil stocks and measures to prioritise diesel supplies.
Shipping risks have become a major concern for the oil market as attacks on tankers in the Gulf and the Strait of Hormuz have increased. The waterway previously carried shipments equivalent to around 20% of global oil and fuel flows, making any sustained disruption a major threat to international supplies.
Tanker attacks through the Strait of Hormuz reached their highest weekly level since the conflict began last week, even as Gulf producers continued increasing exports. The additional shipments are being moved at higher costs and with greater risks to vessels and crews.
In the latest incident, a tanker north of Qatar was hit by multiple projectiles, causing casualties, according to the United Kingdom Maritime Trade Operations agency.
Market analysts said the attacks were keeping crude prices elevated because producers remain willing to ship oil despite the risks, while alternative routes cannot fully replace the volumes moving through the region.
The IEA's planned stock releases may provide temporary relief, but they do not add new production capacity. Analysts noted that the latest release is also likely to include barrels already covered under the agency's earlier 400-million-barrel emergency release plan, limiting its impact on the underlying supply balance.
US inventories add to price support
US supply data also strengthened the bullish case for oil.
US crude inventories fell by 3.2 million barrels to 424.1 million barrels in the week ended October 2, exceeding analysts' expectations for a decline of around 1.7 million barrels.
Distillate inventories, which include diesel and jet fuel, also declined by 42,000 barrels to 105.14 million barrels, leaving stocks well below their average levels for this time of year over the past five years.
Additional supply pressure is emerging from the US Gulf of Mexico, where energy companies have reduced offshore production as Hurricane Isaias approaches. Producers had shut in around 25% of oil production and 16% of natural gas output in the region by Wednesday.
With Middle East shipping risks, lower US inventories and weather-related production cuts occurring at the same time, traders are closely watching whether disruptions translate into tighter physical supplies and keep crude prices above the USD 100-a-barrel level.
