LONDON / ConSynSer / – On Wednesday, October 21, Brent crude futures increased by $1.21 to reach $110 per barrel, according to Reuters, driven by ongoing Middle East tensions that kept oil markets volatile. Meanwhile, US West Texas Intermediate crude gained over $1, climbing to $99 a barrel. Early in the trading session, new incidents involving tankers and Saudi energy facilities pushed prices higher. However, these gains were later mitigated by signs that Gulf export flows are gradually recovering. Currently, Brent is trading nearly 80% higher than it was a year ago.
Iran’s Revolutionary Guards announced that naval mines intercepted three tankers traveling through routes that Tehran had not authorized. A vessel was reportedly struck near Oman, according to the UK Maritime Trade Operations agency. Additionally, Yemen’s Houthi movement claimed responsibility for attacks on Saudi Aramco facilities in Yanbu and the Shaybah oilfield, as well as assaults on airports in Riyadh and Abha. These events have intensified concerns about supply disruptions passing through the Strait of Hormuz.
Throughout the day, trading remained volatile. Brent lost some of its earlier gains and briefly dipped below $108 a barrel, while WTI temporarily hit $100 before retreating below $98. Freight rates in the Persian Gulf stayed at record highs, exerting upward pressure on prices. Over the past month, Brent has risen approximately 8%. In September, prices rebounded after Brent slid to $100.34. The benchmark continues to stay well above the $100 level it tested then.
Hormuz Oil Shipments Near Prewar Volumes
Secretary of State Marco Rubio indicated that shipments passing through the Strait of Hormuz are approaching levels seen before the outbreak of the war. Data from tanker monitoring services Kpler and Vortexa reveal an increase in Middle East crude exports since summer. Producers have ramped up shuttle shipments via Hormuz and ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports rose by 7.9% in August, reaching the highest levels since March. These increased flows contributed to capping Wednesday’s price rally.
Investors also considered new US inventory data. Crude stockpiles declined by just over 3 million barrels last week, according to the Energy Information Administration. This was less than the 4.9 million-barrel draw reported earlier by the American Petroleum Institute. Additionally, weekly US crude production decreased to about 13.27 million barrels per day from 13.68 million a week earlier. Overall, the data presented a mixed picture regarding US oil supplies.
Russian Diesel Deal and Recent Drone Strikes
Russia was anticipated to dispatch its first diesel shipment to the United States on Thursday, following an agreement between President Donald Trump and President Vladimir Putin. Last week, Trump suspended Graham Act penalties on Russia, removing tariffs that would have impacted Russian fuel exports. Meanwhile, Ukraine has increased drone attacks targeting Russian oil infrastructure. Trading Economics noted that these strikes aim to prevent Moscow’s diesel exports from expanding further.
On Thursday, October 22, oil prices continued to advance after a drone attack on Saudi Aramco’s Shaybah oil field resulted in two fatalities. Brent surpassed $111 a barrel, and WTI exceeded $99. Additionally, Washington advised some personnel and their families to vacate US embassies in Saudi Arabia. Traders remain focused on Gulf shipping activity, Saudi oil supplies, and Russian fuel exports as they seek clues about the next direction of prices.
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