Oil rises as Middle East supply concerns persist with shipping attacks
USO•Brent crude rose $2.28 to $102.28 a barrel and WTI gained $1.66 to $89.94 as shipping attacks and hurricane-related production cuts raised supply concerns. U.S. crude inventories fell 3.2 million barrels in the week ended October 2.
1. Supply concerns lift prices
Oil prices rose on Thursday as worries about Middle East supply persisted amid increased attacks on shipping in the Gulf and the Strait of Hormuz. A tanker north of Qatar was struck by multiple projectiles, causing casualties, the United Kingdom Maritime Trade Operations agency said. Brent rose 2.28% to $102.28 a barrel, while WTI gained 1.88% to $89.94.
2. Storm cuts U.S. output
Hurricane Isaias prompted companies to curtail offshore operations in the Gulf of Mexico. Producers had shut in about 25.08% of current oil production and 16.37% of natural gas production as of Wednesday. Separately, U.S. crude inventories fell 3.2 million barrels to 424.1 million in the week ended October 2, compared with analysts' expectations for a 1.7 million-barrel decline.
