Brent crude rose back above $105 a barrel today amid reports of increasing Iranian attacks on oil tankers in Hormuz. while U.S. Gulf Coast operators began production stoppage and prepare refineries for an approaching storm.
At the time of writing, Brent crude was trading at $105.02 per barrel, up more than 4.81% from Wednesday’s close…
While West Texas Intermediate changed hands for $92.69 per barrel, up 5% from Wednesday.
Earlier this week, oil fell following the latest update from the International Energy Agency, which said it would soon decide how exactly to begin releasing those 100 million barrels of crude and fuels agreed by the G7 last week. Some observers noted, however, that this was not a new release, but part of a plan announced in March to release some 400 million barrels from stocks to cushion the war-time blow to fuel prices.
In other words, this release has already been largely priced in, so news of Iran’s intensifying attacks on oil tankers in the Strait of Hormuz helped drive up prices. According to the new data According to a news outlet run by the U.S. Navy, there were about a dozen attacks between September 28 and October 2 alone, Reuters reported earlier today.
Due to these attacks, tanker traffic on this critical waterway has fallen sharply again, with throughputs on Tuesday at their lowest since late July, according to Kpler. However, producers are running out of options.
“In the past, such attacks have led to reduced shipments from the Persian Gulf. This time around, producers appear willing to take the risk of their ships being damaged because there is no other way to get their oil to international markets,” said ANZ analyst Daniel Hynes. quoted by Reuters today.
By Irina Slav for Oilprice.com
More important reading on Oilprice.com
Gn bussni
