Oil rises on Middle East supply fears, US inventory drawdowns
USO•Oil prices rose more than $1 as escalating Middle East tensions fueled fears of supply disruptions and US crude and product inventories fell. Brent gained 1.5% to $110.38 a barrel, while WTI rose 1.4% to $99.18.
1. Prices rise
Brent crude futures gained $1.59, or 1.5%, to $110.38 a barrel, while US West Texas Intermediate crude rose $1.36, or 1.4%, to $99.18, as of 0350 GMT on Wednesday. Prices had fallen in the previous session after Iran's president discussed mediation efforts with Pakistan's army chief.
2. Supply concerns
Iran told Pakistan's army chief there would be no talks with Washington until its demands were met, Iranian media reported. There was no official confirmation. Kpler said at least 18 vessel attacks had been recorded over two weeks, while LSEG analysts said tanker targeting had extended beyond the Strait of Hormuz.
3. US inventories fall
US crude stocks fell 4.9 million barrels in the week ended October 16, according to market sources citing American Petroleum Institute data. Two US Energy Department officials said they were working with refiners around the world to boost fuel output as a diesel shortage raised prices.
