Oil prices climb over 1% (representative image)
Oil prices rose on Wednesday as traders weighed concerns over Middle East supplies amid growing risks to shipping in the Red Sea and threats to oil infrastructure in Saudi Arabia.Brent crude futures climbed $1.34, or 1.23 per cent, to $110.10 per barrel, while US West Texas Intermediate (WTI) crude rose $1.18, or 1.21 per cent, to $99 per barrel.The gains followed a decline in the previous session, when prices eased after Iran's president discussed mediation efforts with Pakistan's army chief during a meeting in Tehran.
Tanker attacks raise concerns over oil supplies
Supply concerns intensified after a supertanker caught fire after striking a sea mine south of the Strait of Hormuz, according to Iran's Revolutionary Guards Navy.Iranian media reported that the vessel had been “violating” Iranian regulations.At least 18 vessel attacks were reported over a two-week period, ship-tracking firm Kpler said in a note on Monday.The attacks have also spread beyond the Strait of Hormuz, a key route for global oil shipments.“Attacks on tankers have expanded beyond the Strait of Hormuz,” LSEG analysts said in a note.“Iran has been targeting vessels as far south as the Gulf of Oman, threatening loadings outside of the Arab Gulf, as well as the ship-to-ship transfers that have helped to support Middle East loadings as the conflict has dragged on,” the analysts added.
The Houthis on Monday claimed responsibility for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and the airports in Riyadh and Abha, Saudi Arabia.Meanwhile, the death toll from a Houthi attack on Yemeni government forces on Monday rose to 73 as fighting intensified, Reuters reported.Iranian foreign minister Abbas Araqchi said in a television interview aired on Tuesday that Tehran had not received a response from Saudi Arabia or Yemen's Houthis to its offer to help broker peace talks.
Oil prices retreat from five-month high
Despite Wednesday's gains, crude prices had fallen in the previous session after reaching elevated levels.Brent crude futures settled down 76 cents, or 0.69 per cent, at $108.79 per barrel on Tuesday, after touching a five-month high of $111.99.The November contract for US WTI crude, which expired on Tuesday, settled $1.87 lower, down 1.8 per cent, at $101.79 per barrel.
US works to increase fuel supplies
In the United States, two Energy Department officials said on Tuesday that they were working with refiners around the world to increase fuel production as a diesel shortage pushed prices higher.US crude oil inventories were also expected to have declined in the week ended October 16, alongside stocks of refined petroleum products, according to an extended Reuters poll.The eight analysts surveyed by Reuters estimated that US crude inventories fell by an average of around 800,000 barrels during the week.Market participants are monitoring developments across the Middle East, including threats to shipping routes and energy infrastructure, for their potential impact on oil supplies and prices.