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Oil prices climbed by more than $1 on Wednesday as rising Middle East tensions increased fears of supply disruptions. Falling US crude and fuel inventories also supported the market.
Brent crude futures rose $1.59, or 1.5%, to $110.38 a barrel. US West Texas Intermediate (WTI) crude gained $1.36, or 1.4%, to $99.18 a barrel.
Prices had fallen during the previous session after Iran’s president discussed mediation efforts with Chief of Defence Forces and Army Chief Field Marshal Syed Asim Munir in Tehran. Brent had earlier reached a five-month high before retreating.
Suvro Sarkar, head of energy research at DBS, described recent trading as volatile.
“Oil prices have been having a bit of a wild ride in the last couple of sessions,” Sarkar said.
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He attributed the fluctuations to profit-taking and hopes for a deal brokered by Qatar or Pakistan. However, he noted that any agreement remained distant. US inventory data also supported prices by showing continued stock declines.
Iran reportedly told Field Marshal Munir that it would not negotiate with Washington until its demands were met, Nournews reported on Tuesday. The outlet also said a Qatari delegation had arrived in Tehran. Officials had not confirmed these reports.
Maritime security risks have added to concerns about global oil supplies. Ship-tracking firm Kpler reported at least 18 vessel attacks over the previous two weeks.
Analysts at LSEG warned that Iran was targeting tankers beyond the Strait of Hormuz, including in the Gulf of Oman. These attacks threaten crude oil loadings across the Gulf and ship-to-ship transfers that support regional exports.
Meanwhile, Yemen’s Houthi group claimed responsibility on Monday for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield and airports in Riyadh and Abha.
The death toll from a separate Houthi attack on Yemeni government forces rose to 73 as fighting intensified.
Iranian Foreign Minister Abbas Araghchi said in a television interview aired on Tuesday that Tehran had received no response from Saudi Arabia or the Houthis to its offer to help broker peace talks.
In the United States, two Energy Department officials said on Tuesday that they were working with refiners worldwide to increase fuel production. A diesel shortage has pushed prices higher.
Market sources citing data from the American Petroleum Institute (API) said US crude inventories fell by 4.9 million barrels in the week ended October 16.
Falling inventories, mounting shipping risks and uncertainty over diplomatic efforts continue to shape oil market movements. Traders are watching developments in the Middle East closely as concerns over supply disruptions persist.
[…] Oil Prices Rise as Middle East Tensions Raise Supply Concerns […]