LONDON / ConSynSer / – On Wednesday, October 21, Brent crude futures increased by $1.21 to reach $110 per barrel, according to Reuters, as oil prices gained. Meanwhile, US West Texas Intermediate crude also rose over $1, climbing to $99 per barrel. This upward movement occurred amid a volatile trading session fueled by fresh assaults on shipping and energy facilities in the Middle East. Market participants balanced those threats against indications of a recovery in Gulf crude exports. Currently, Brent is trading nearly 80% higher than it was a year ago.
Iran’s Revolutionary Guards announced that naval mines had halted three tankers traveling through routes Tehran deems unauthorized. The UK Maritime Trade Operations agency reported a vessel being struck near Oman. Yemen’s Houthis claimed responsibility for attacks on Saudi Aramco installations in Yanbu and the Shaybah oilfield, as well as strikes on airports in Riyadh and Abha. These incidents have renewed concerns about supply routes passing through the Strait of Hormuz.
Throughout the day, prices experienced sharp fluctuations. Brent pared some gains later in the session and dipped below $108 at one point, while WTI briefly touched $100 before dropping back below $98. Elevated freight rates in the Persian Gulf continued to bolster prices. According to Trading Economics data, Brent has gained approximately 8% over the last month. Oil prices also rebounded in late September after a four-session decline.
Gulf exports mitigate supply concerns
US Secretary of State Marco Rubio stated that shipments passing through the Strait of Hormuz were nearing prewar levels. Tanker-tracking data from Kpler and Vortexa indicated that Middle Eastern crude exports have increased since summer, with producers ramping up shuttle shipments through Hormuz and ship-to-ship transfers in the Gulf of Oman. Saudi crude exports in August rose by 7.9%, reaching their highest since March. The resurgence in flows helped prevent larger gains during Wednesday’s trading session.
US inventory reports also played a role in price movements. The Energy Information Administration reported a decline of just over 3 million barrels in US crude stocks last week, while the American Petroleum Institute recorded a larger drop of 4.9 million barrels. US weekly crude production was around 13.27 million barrels per day, down from 13.68 million the week before. These reduced inventories suggest tighter supply conditions in the world’s largest oil-consuming nation.
Russian diesel shipment and Saudi strikes 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. Last week, Trump waived Russia sanctions under the Graham Act, allowing the deal to proceed. Meanwhile, Ukraine has launched extensive drone attacks targeting Russian oil infrastructure, aiming to prevent Moscow from expanding diesel exports, as noted by Trading Economics.
On Thursday, October 22, prices climbed again after a drone attack on Saudi Aramco’s Shaybah oil field resulted in two fatalities. Brent surpassed $111 per barrel, while WTI moved above $99. The United States also ordered some personnel and family members to evacuate its embassies in Saudi Arabia. Traders continue to watch Gulf shipping activity, Saudi oil production, and Russian fuel flows for the next directional move in prices.