Oil remains beyond $100 per barrel as Middle East supply concerns persist
Oil prices inched higher on Thursday as concerns over supply from the Middle East intensified amid a rise in attacks on vessels in the Gulf and the Strait of Hormuz.Brent crude was trading at $101.50 a barrel, up $1.32 or 1.32%, while WTI crude stood at $89.28, gaining $1 or 1.13%.The latest gains come despite a fall in prices in the previous session, when the International Energy Agency agreed to speed up the release of oil stocks and give priority to diesel supplies. The plan, launched in March, is aimed at dealing with record fuel prices and supply disruptions linked to the Iran war.Shipping through the Strait of Hormuz has become a growing concern as the US-Israeli conflict with Iran enters its eighth month. Before the war, the route handled shipments equivalent to about 20% of global oil and fuel supplies.The pressure on shipping has increased even as Gulf producers raise exports. Tanker attacks through the Strait reached their highest level last week for any week since the Iran war began, leaving crude shipments facing higher costs and greater risks for cargoes and crew.A tanker north of Qatar was struck by multiple projectiles in the latest attack, causing casualties, the United Kingdom maritime trade operations agency said on Wednesday.Supply concerns were accompanied by signs of tighter US inventories. According to Reuters, American crude stocks fell by 3.2 million barrels in the week ended October 2 to 424.1 million barrels, according to the Energy Information Administration. The decline was larger than the 1.7 million-barrel fall analysts had expected in a Reuters poll.Diesel and jet fuel inventories also declined, with distillate fuel stocks falling by 42,000 barrels to 105.14 million barrels. Those inventories remained below their levels for this period of the year over the past five years.Oil markets have remained unsettled for more than seven months since the Middle East conflict began. Even with the latest increase, prices are still below the $126 a barrel level reached earlier in the crisis.
