Oil resumed growth amid new risks in Hormuz and declining US inventories
World oil prices on Wednesday, October 21, resumed growth after a decline the previous day. The market is reacting to new reports of threats to tankers in the Strait of Hormuz and a reduction in crude oil and petroleum product inventories in the US.
According to Bloomberg, during morning trading, Brent again exceeded $110 per barrel, and American West Texas Intermediate (WTI) approached $99. Later, as reported by The Wall Street Journal, December Brent futures rose 1.3% to $110.19, and WTI rose 1.2% to $98.97 per barrel.
One of the growth factors was reports of new incidents with tankers near the Strait of Hormuz. Iranian state television IRIB, citing the Islamic Revolutionary Guard Corps, reported that a supertanker was hit by a naval mine.
At the same time, the Iranian side did not name the vessel and did not specify exactly when the incident occurred. There is currently no independent confirmation of this report.
According to The Wall Street Journal, ANZ Research analysts, citing data from Kpler, noted that over the past two weeks, at least 18 vessels have been affected by attacks in the strait area.
Despite the gradual restoration of oil exports from the Persian Gulf countries, risks for maritime transportation remain high. Attacks on tankers force shipowners to take into account additional insurance and freight costs, which supports high energy prices.
Additional support for oil quotes was provided by data on declining inventories in the US. According to preliminary estimates from the American Petroleum Institute (API), last week commercial crude oil inventories in the country decreased by 4.9 million barrels.
At the same time, gasoline and distillate inventories, which include diesel fuel and heating oil, also decreased. This indicates a further reduction in available petroleum product reserves on the American market.
If the official statistics from the U.S. Energy Information Administration (EIA), to be released on October 21, confirm these figures, the decline in crude oil inventories will be the third consecutive weekly decline.
Senior analyst at Rakuten Securities, Yutaro Nishi, told Bloomberg that the reduction in American inventories reinforces signs of a supply shortage in the global market and supports oil prices.
The previous day, Brent had already risen to about $111 per barrel amid tensions in the Middle East. The current resumption of growth occurs after a price correction, rather than marking a new high.
For countries dependent on imported oil products, maintaining high global prices creates risks of rising procurement costs for gasoline and diesel fuel. Transport companies, logistics operators, and enterprises with high fuel expenditures remain particularly sensitive to such changes.
Sources: Bloomberg, The Wall Street Journal
