LONDON / ConSynSer / – On Wednesday, October 21, oil prices experienced an upward movement, with Brent crude futures rising by $1.21 to reach $110 per barrel, according to Reuters. Meanwhile, US West Texas Intermediate crude also increased by over $1, climbing to $99 per barrel. This fluctuation occurred during a highly volatile trading session prompted by renewed attacks targeting shipping and energy facilities in the Middle East. Investors balanced these risks against indications that crude exports from the Gulf are beginning to recover. Brent has now appreciated nearly 80% compared to the same period last year.
Iran’s Revolutionary Guards announced that naval mines have halted three tankers operating along routes Tehran considers unauthorized. The UK Maritime Trade Operations agency reported that a vessel was hit near Oman. Yemen’s Houthis claimed responsibility for assaults on Saudi Aramco facilities in Yanbu and at the Shaybah oilfield. The group also reported attacks on airports in Riyadh and Abha. These incidents have reignited concerns over supply corridors passing through the Strait of Hormuz.
Throughout the day, market prices exhibited significant swings. Brent’s gains diminished later in trading, dropping below $108 at certain points. WTI briefly touched $100 but then dipped below $98. Elevated freight rates in the Persian Gulf continued to support prices. According to Trading Economics data, Brent has increased approximately 8% over the past month. Oil prices also rebounded in late September after a four-session decline.
Gulf Export Flows Counteract Supply Concerns
US Secretary of State Marco Rubio indicated that shipments passing through the Strait of Hormuz are nearing prewar levels. Tanker tracking data from Kpler and Vortexa reveal that Middle Eastern crude exports have increased since summer. Producers are boosting shuttle shipments through Hormuz and conducting ship-to-ship transfers in the Gulf of Oman. In August, Saudi crude exports rose by 7.9%, reaching their highest levels since March. These recovering flows contributed to limiting price gains during Wednesday’s trading session.
US inventory figures also played a role in shaping market behavior. The Energy Information Administration reported that US crude stocks decreased by just over 3 million barrels last week. In contrast, the American Petroleum Institute had previously reported a larger decline of 4.9 million barrels. US weekly crude production was approximately 13.27 million barrels per day, down from 13.68 million the week prior. Lower inventories suggest tighter supply conditions in the US, the world’s largest oil consumer.
Russian Diesel Shipments and Saudi Attacks Under Scrutiny
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. Trump waived Russia sanctions under the Graham Act last week, paving the way for this transaction. Meanwhile, Ukraine has launched extensive drone strikes on Russian oil infrastructure, signaling Kyiv’s efforts to prevent Moscow from expanding its diesel exports, according to Trading Economics.
On Thursday, October 22, oil prices climbed again after a drone attack on Saudi Aramco’s Shaybah oil field resulted in two fatalities. Brent surged past $111 per barrel, and WTI moved above $99. Additionally, the United States ordered some personnel and their family members to evacuate its embassies in Saudi Arabia. Market participants remain attentive to developments in Gulf shipping, Saudi oil output, and Russian fuel flows as potential indicators of future price movements.