LONDON / ConSynSer / – On Wednesday, October 21, oil prices experienced an uptick, with Brent crude futures increasing by $1.21 to reach $110 per barrel, according to Reuters. Meanwhile, US West Texas Intermediate crude also advanced more than $1, climbing to $99 per barrel. This fluctuation occurred amid a highly volatile trading session triggered by new attacks targeting shipping and energy infrastructure in the Middle East. Market participants balanced these threats against signs that crude exports from the Gulf are gradually recovering. Currently, Brent trades nearly 80% higher than it did a year ago.
Iran’s Revolutionary Guards announced that naval mines have halted three tankers, which Tehran considers to be operating on unauthorized routes. The UK Maritime Trade Operations agency confirmed that a vessel was hit near Oman. Yemen’s Houthis claimed responsibility for attacks on Saudi Aramco facilities in Yanbu and at the Shaybah oilfield. The group also reported strikes on airports in Riyadh and Abha. These incidents reignited concerns over supply routes passing through the Strait of Hormuz.
Throughout the day, prices fluctuated significantly. Brent’s gains diminished later in the session, dipping below $108 at one point. WTI briefly touched $100 before slipping under $98. Elevated freight rates in the Persian Gulf continued to bolster prices. According to Trading Economics data, Brent has increased approximately 8% over the past month. Oil prices also rebounded in late September after a four-session decline.
Gulf export levels counter supply concerns
US Secretary of State Marco Rubio stated 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 risen since summer. Producers are boosting shuttle shipments through Hormuz and engaging in ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports increased by 7.9% in August, reaching their highest level since March. This recovery in flow helped limit the gains seen during Wednesday’s trading session.
US inventory reports also affected trading dynamics. The Energy Information Administration announced that US crude stocks decreased by a little over 3 million barrels last week. The American Petroleum Institute reported a larger decline of 4.9 million barrels. US weekly crude production was approximately 13.27 million barrels per day, down from 13.68 million the week prior. These reduced inventories suggest a tightening of supplies in the world’s largest oil-consuming country.
Russian diesel shipment 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, paving the way for this deal. Meanwhile, Ukraine has launched significant drone strikes against Russian oil infrastructure. These actions indicate Kyiv’s efforts to prevent Moscow from expanding diesel exports, according to Trading Economics.
On Thursday, October 22, prices rose again after a drone attack on Saudi Aramco’s Shaybah oil field resulted in the death of two individuals. Brent exceeded $111 per barrel, while WTI moved above $99. Additionally, the United States has ordered some personnel and their families to evacuate its embassies in Saudi Arabia. Traders continue to closely monitor Gulf shipping activity, Saudi oil output, and Russian fuel flows to determine the next trend in oil prices.