Noida, Oct 21 (APAC Media): Brent crude futures climbed on Wednesday as escalating geopolitical tensions in the Middle East heightened concerns over potential supply disruptions, while a sharp decline in U.S. crude inventories pointed to tightening oil market conditions in the world’s largest fuel-consuming nation.
Brent crude futures rose 1.8% to $110.60 per barrel by 4:10 p.m. IST, while U.S. West Texas Intermediate (WTI) crude advanced 1.9% to $99.80 per barrel.
Israeli Prime Minister Benjamin Netanyahu is seeking to restart major military strikes against Iran, the FT reported on Wednesday.
According to the report, Netanyahu directed the military to prepare a large-scale offensive earlier this month, but the operation was put on hold after U.S. President Donald Trump urged Israel to refrain from attacking Iran ahead of the U.S. midterm elections in November.
Oil prices remained supported by escalating hostilities in the Middle East, as fighting between the Saudi-led coalition and Yemen’s Iran-backed Houthi rebels raised fresh concerns over regional supply disruptions.
The coalition said its forces were battling to repel a large-scale Houthi assault in Kahboub, southwestern Yemen, amid heavy bombardment and intensive air support.
Market concerns were compounded by continued disruption to shipping through the Strait of Hormuz, a critical route for global oil supplies.
Oil prices briefly retreated on Tuesday following reports of a Qatar-Pakistan proposal to restart negotiations to end the Iran conflict, but later rebounded as concerns over renewed military confrontation between Washington and Tehran resurfaced.
Reports of another tanker catching fire in the strait added to concerns over maritime security.
Meanwhile, data from the American Petroleum Institute showed U.S. crude inventories fell by 4.93 million barrels in the week ended October 16, significantly exceeding market expectations for a decline of 1.3 million barrels.
The latest draw followed two consecutive weeks of substantial inventory declines, with disruptions to Gulf Coast production attributed to Hurricane Isaias. Official inventory figures from the U.S. Energy Information Administration were due later on Wednesday, with analysts expecting a draw of 300,000 barrels.
Despite Gulf oil exports recovering to above pre-war levels, concerns persist over the sustainability and cost of shipments through the region. The sharp inventory draw also comes as the U.S. Strategic Petroleum Reserve remains at its lowest level in 44 years, following months of emergency releases to help offset global supply disruptions.
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Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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