LONDON / ConSynSer / – On Wednesday, October 21, Reuters reported that Brent crude futures increased by $1.21 to reach $110 a barrel, driven by ongoing tensions in the Middle East that kept oil markets tense. Meanwhile, US West Texas Intermediate crude rose more than $1, climbing to $99 a barrel. Early trading saw prices jump due to new incidents involving tankers and Saudi energy facilities, although later gains were moderated by signs of recovering Gulf export flows. Compared to the same period last year, Brent is trading nearly 80% higher.
The Revolutionary Guards of Iran reported that naval mines had halted three tankers traveling through routes not authorized by Tehran. Additionally, a vessel was struck near Oman, according to the UK Maritime Trade Operations agency. 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 heightened concerns over the security of supply passing through the Strait of Hormuz.
Throughout the trading day, market activity remained volatile. Brent prices temporarily lost their gains and dipped below $108 a barrel, while WTI briefly hit $100 before falling back below $98. Freight rates in the Persian Gulf stayed at record levels, exerting upward pressure on prices. Over the past month, Brent has gained roughly 8%. Prices had rebounded after falling to $100.34 in September. The benchmark continues to trade well above the $100 level tested then.
Hormuz exports nearing pre-conflict levels
According to Secretary of State Marco Rubio, shipments through the Strait of Hormuz are approaching levels seen before the conflict. Data from tanker trackers Kpler and Vortexa indicates that Middle East crude exports have been rising since summer. Producers have increased shuttle shipments through Hormuz and engaged in ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports grew by 7.9% in August, reaching their highest since March. These increased flows contributed to capping Wednesday’s price rally.
Market participants also analyzed the latest US inventory data. Crude oil stocks decreased by just over 3 million barrels last week, according to the Energy Information Administration, which was less than the 4.9 million-barrel draw reported earlier by the American Petroleum Institute. US crude output declined slightly to around 13.27 million barrels per day from 13.68 million the previous week, providing mixed signals about US supply conditions.
Russian diesel exports, drone attacks on oil facilities
A deal between President Donald Trump and Russian President Vladimir Putin is expected to enable Russia to ship its first diesel cargo to the United States on Thursday. Trump suspended Graham Act penalties on Russia last week, removing tariffs that would have impacted Russian fuel exports. Meanwhile, Ukraine has increased drone assaults on Russian oil infrastructure, with Trading Economics suggesting these strikes aim to prevent Moscow from expanding its diesel exports.
Oil prices extended gains on Thursday, October 22, following a drone attack that killed two individuals at Saudi Aramco’s Shaybah oil field. Brent surpassed $111 a barrel, and WTI moved above $99. The US also advised certain personnel and their families to evacuate US embassies in Saudi Arabia. Investors continue monitoring Gulf shipping, Saudi oil supplies, and Russian fuel exports for indications of future price movements.