Rise in oil prices and global supply concerns
Brent crude and WTI prices rose amid attacks in Hormuz and supply concerns, while a decline in US inventories supported market activity.
Brent crude futures rose 1.33% to $101.53 per barrel, while US crude WTI gained 1.26% to reach $89.39. Oil prices are experiencing volatility due to attacks in Hormuz and supply concerns.
Current Status of Oil Prices
Brent crude futures increased by 1.33% to $101.53 per barrel. US crude WTI gained 1.26% to reach $89.39.
Oil prices had declined on Wednesday following the International Energy Agency's decision to accelerate the use of oil inventories and prioritize diesel supply.
Attacks in Hormuz and Supply Concerns
In the latest attack in the region, it was reported that a tanker sailing north of Qatar was hit by multiple projectiles and that casualties occurred.
The United Kingdom Maritime Trade Operations agency also confirmed the attack, while experts stated that producers continue to take risks as there are no alternative routes.
US Inventory Data and Fuel Demand
According to Energy Information Administration data, US crude oil inventories decreased by 3.2 million barrels to 424.1 million barrels in the week ending October 2.
The decline in diesel and jet fuel inventories, staying well below the five-year average for this time of year, kept supply concerns alive.