Brent oil prices near 5-month high on Middle East supply fears, US inventory drawdowns
USO•Brent crude rose 1.2% to $110.11 a barrel and U.S. WTI gained 1.2% to $99 as attacks on Gulf shipping and a lack of diplomatic progress raised supply concerns. U.S. crude inventories fell 4.9 million barrels in the week ended October 16, market sources said, citing API data.
1. Prices rise on supply fears
Oil prices rose by more than $1 on Wednesday, with Brent near a five-month high, as attacks on Gulf shipping and no signs of diplomatic progress to end the Iran war fuelled concerns about supply disruptions. Brent futures rose $1.32, or 1.2%, to $110.11 a barrel by 0747 GMT, while U.S. West Texas Intermediate gained $1.18, or 1.2%, to $99.
2. Shipping attacks mount
Shiptracker Kpler said at least 18 vessel attacks were recorded over the past two weeks. LSEG analysts warned that Iran was targeting tankers beyond the Strait of Hormuz, reaching into the Gulf of Oman and jeopardising Gulf crude loadings and ship-to-ship transfers supporting regional loadings. Iranian media reported that Tehran told Pakistan's army chief it would not hold talks with Washington until its demands were met.
3. U.S. inventories fall
U.S. crude stocks fell 4.9 million barrels in the week ended October 16, with gasoline and distillate inventories also down, market sources said, citing API data. Government inventory data was due at 1430 GMT. Two Energy Department officials said the department was working with refiners around the world to boost fuel output.
