Oil prices climbed sharply on Oct 8, with Brent crude rising 1.33% to US$101.53 a barrel, as escalating attacks on tankers in the Gulf and Strait of Hormuz heightened concerns over Middle East supply disruptions.
Reuters reported that Brent crude futures gained US$1.33 to US$101.53 a barrel by 0116 GMT, while US West Texas Intermediate crude rose US$1.11, or 1.26%, to US$89.39.
The rebound followed the decline on Oct 7 after the International Energy Agency (IEA) agreed to accelerate strategic oil stock releases and prioritise diesel supplies to ease record fuel prices and disruptions stemming from the Iran war.
However, mounting security threats in the Strait of Hormuz, which handled approximately 20% of global oil and fuel shipments before the conflict, continue to overshadow efforts to stabilise supply.
Attacks on vessels passing through the strategic waterway reached their highest weekly level since the conflict began, even as Gulf producers ramped up exports despite rising transportation costs and security risks.
In the latest incident, a tanker north of Qatar was struck by multiple projectiles, resulting in casualties, according to the United Kingdom Maritime Trade Operations agency.
ANZ senior commodity strategist Daniel Hynes said producers appeared increasingly willing to risk vessel damage, given the lack of alternative routes to international markets.
He also cautioned that the IEA’s accelerated releases may simply draw from its previously announced 400-million-barrel programme rather than introduce additional supply.
Further support came from tighter US oil inventories, with crude stockpiles falling by 3.2 million barrels to 424.1 million barrels in the week ended Oct 2, exceeding market expectations for a 1.7-million-barrel decline.
Distillate inventories, including diesel and jet fuel, slipped by 42,000 barrels to 105.14 million barrels, remaining significantly below their five-year seasonal levels.
With shipping risks intensifying and inventories tightening, oil markets remain vulnerable to further price spikes despite coordinated efforts to release strategic reserves.
