Oil jumps as Middle East supply concerns persist amid shipping attacks
USO•Oil prices rose nearly 4% on Thursday, with Brent at $102.28 a barrel and WTI at $91.99, as Middle East supply concerns and US storm-related output cuts supported prices. US Gulf producers had shut in 25.08% of oil output and 16.37% of gas output.
1. Prices rise on supply worries
Brent crude futures rose $4.14, or 4.13%, to $102.28 a barrel by 0900 GMT, while US West Texas Intermediate gained $3.71, or 4.2%, to $91.99. Shipping attacks in the Gulf and Strait of Hormuz and a hurricane approaching US offshore production areas added to supply concerns.
2. Shipping and storm disruptions
Attacks on tankers crossing the Strait of Hormuz last week reached their highest level since the conflict began, as Gulf producers increased exports. US Gulf of Mexico producers had shut in about 25.08% of current oil output and 16.37% of current natural gas output as of Wednesday because of the storm. Shell and Chevron said they were curtailing offshore operations.
3. Inventories and regional risks
US crude inventories fell 3.2 million barrels in the week ended October 2, the article said. An analyst said a pending US storm and a report that Washington was preparing to resume major combat operations against Iran were keeping oil prices above $100 a barrel; the article said the report could not be independently verified. Syria was weighing military assistance for Saudi Arabia in its conflict with Yemen's Houthis, officials said.
