LONDON / ConSynSer / – On Wednesday, October 21, Brent crude futures increased by $1.21 to reach $110 per barrel, according to Reuters. Ongoing tensions in the Middle East kept the oil market tense. Meanwhile, US West Texas Intermediate crude rose over $1 to hit $99 a barrel. Early in trading, new incidents involving tankers and Saudi energy facilities pushed prices higher. However, later evidence of recovering Gulf export flows limited gains. Brent now trades nearly 80% higher than it did a year ago.
Iran’s Revolutionary Guards announced that naval mines halted three tankers on routes Tehran had not approved. The UK Maritime Trade Operations agency reported a vessel hit near Oman. Yemen’s Houthi movement claimed responsibility for attacks on Saudi Aramco sites in Yanbu and the Shaybah oilfield. They also reported targeting airports in Riyadh and Abha. These events intensified concerns about supply routes passing through the Strait of Hormuz.
Throughout the trading day, market movements remained volatile. Brent initially gained but later dropped below $108 per barrel. WTI briefly touched $100 before slipping under $98. Freight rates in the Persian Gulf remained at record highs, adding upward pressure. Over the past month, Brent has risen approximately 8%. Prices had rebounded after Brent slid to $100.34 in September. The current level stays significantly above the $100 mark tested then.
Hormuz shipments nearing prewar levels
Secretary of State Marco Rubio stated that shipments through the Strait of Hormuz are approaching prewar volumes. Data from tanker trackers Kpler and Vortexa indicated rising Middle East crude exports since summer. Producers have increased shuttle shipments through Hormuz and ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports grew by 7.9% in August, reaching their highest point since March. These increases helped limit Wednesday’s price rally.
Market participants also reviewed recent US inventory data. The Energy Information Administration reported a crude stock decrease of just over 3 million barrels last week. This was smaller than the 4.9 million-barrel draw earlier reported by the American Petroleum Institute. US weekly crude output dropped to about 13.27 million barrels per day from 13.68 million the previous week. The data showed mixed signals regarding US supply levels.
Russia’s diesel export plans and drone attacks on Russian infrastructure
Russia is expected to send its first diesel cargo to the United States on Thursday, following a deal between President Donald Trump and President Vladimir Putin. Trump suspended Graham Act penalties on Russia last week, lifting tariffs on Russian fuel products. Ukraine has intensified drone strikes on Russian oil infrastructure. Trading Economics stated these attacks aim to prevent Moscow from expanding its diesel exports.
Oil prices continued to rise on Thursday, October 22, after a drone strike killed two people at Saudi Aramco’s Shaybah oil field. Brent surpassed $111 per barrel, while WTI went above $99. In response, Washington advised some personnel and their families to leave US embassies in Saudi Arabia. Traders are closely monitoring Gulf shipping, Saudi supply, and Russian fuel exports for clues about the next price move.