LONDON / ConSynSer / – On Wednesday, October 21, oil markets experienced notable increases, with Brent crude futures rising by $1.21 to reach $110 per barrel, according to Reuters. Persistent Middle East tensions contributed to this volatility. Meanwhile, US West Texas Intermediate crude gained over $1, climbing to $99 per barrel. Early in the trading session, new incidents involving tankers and Saudi energy facilities pushed prices higher. Later, signs of recovery in Gulf export flows helped curb some of the earlier gains. Compared to last year, Brent has surged nearly 80%.
Iran’s Revolutionary Guards announced that naval mines halted three tankers traveling through routes not authorized by Tehran. A vessel was damaged near Oman, as reported by the UK Maritime Trade Operations agency. Yemen’s Houthi movement claimed responsibility for attacks targeting Saudi Aramco sites in Yanbu and the Shaybah oilfield. They also reported assaults on airports in Riyadh and Abha. These events have intensified concerns over oil supply routes passing through the Strait of Hormuz.
Throughout the day, trading remained volatile. Brent’s price briefly declined below $108 a barrel after initially rising, and WTI touched $100 before slipping beneath $98. Freight rates in the Persian Gulf remained at record levels, exerting additional upward pressure. Over the past month, Brent has increased approximately 8%. Prices had rebounded after Brent slid to $100.34 in September. The benchmark remains significantly above the $100 level tested then.
Hormuz shipments approach prewar volumes
Secretary of State Marco Rubio stated that shipments passing through the Strait of Hormuz are nearing prewar levels. Data from tanker monitoring firms Kpler and Vortexa indicate that Middle East crude exports have been rising since summer. Producers are increasing shuttle shipments via Hormuz and conducting ship-to-ship transfers in the Gulf of Oman. Saudi Arabia’s crude exports grew by 7.9% in August, reaching their highest point since March. These increased flows helped limit Wednesday’s price rally.
Investors also analyzed the latest US inventory data. Crude stocks decreased by just over 3 million barrels last week, according to the Energy Information Administration, which was less than the 4.9 million-barrel draw reported earlier by the American Petroleum Institute. US crude production declined slightly, settling at around 13.27 million barrels per day from 13.68 million the previous week. These mixed signals suggest a complex US supply situation.
Russian diesel shipment and drone attacks on oil infrastructure
Expected to be Russia’s first diesel cargo to the US under a recent deal between President Donald Trump and President Vladimir Putin, the shipment is set for Thursday. Trump suspended Graham Act penalties on Russia last week, removing tariffs that would have impacted Russian fuel exports. Meanwhile, Ukraine has intensified drone strikes against Russian oil infrastructure, with Trading Economics noting these attacks aim to prevent Moscow’s expansion of diesel exports.
On Thursday, October 22, oil prices extended gains after a drone strike on Saudi Aramco’s Shaybah oil field resulted in two fatalities. Brent surpassed $111 a barrel, and WTI rose above $99. Additionally, Washington has advised some personnel and their families to evacuate US embassies in Saudi Arabia. Traders continue to scrutinize Gulf shipping activity, Saudi oil supply, and Russian fuel exports for clues about the next direction in prices.