Noida, Oct 7 (APAC Media): Oil prices rose on Wednesday, recovering from five-week lows as renewed risks to energy supplies from the Middle East outweighed signs of improving crude flows from the region.
Brent crude futures climbed 0.90% to $101 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.87% to $90.20 a barrel by 9:41 a.m. IST.
The gains extended a rally from Tuesday, when escalating fighting between Iran-backed Houthi forces and Yemen’s Saudi-backed government heightened concerns over potential supply disruptions. The Houthis also claimed to have targeted a major Saudi refinery, adding to market anxiety.
Tensions around the Strait of Hormuz have intensified recently, with Iran stepping up attacks on oil tankers and other vessels in the strategic waterway. The UK Maritime Trade Operations (UKMTO) has reported multiple incidents in the area this month, underscoring the risks facing one of the world’s most important oil transit routes.
A Saudi-led coalition said it had intercepted and destroyed a ballistic missile fired by the Houthis towards Khamis Mushait in southern Saudi Arabia.
Despite the escalation, oil prices remained lower for the week as indications of recovering crude flows from the Persian Gulf eased concerns over potential supply disruptions.
Tankers have continued to pass through the Strait of Hormuz despite heightened security risks, while Saudi Arabia has restored its East-West oil pipeline to a crude pumping capacity of 5.8 million barrels per day.
The improving flow of supplies has helped ease some concerns about a prolonged disruption to global crude markets.
“Flows through Hormuz and the Middle East had risen sharply over the past few weeks, coming back in sight of pre-war levels,” shipping data cited by News Agency showed. The recovery has occurred as the United States continues to provide naval protection in the region.
However, security risks remain elevated, with the UK Maritime Trade Operations (UKMTO) reporting multiple attacks on vessels near the waterway since late September, including one as recently as Sunday.
Iran has repeatedly warned that shipping through the Strait of Hormuz could remain restricted until the United States meets its demands, while also urging vessels to avoid a U.S.-backed route through the strategic waterway.
Meanwhile, Saudi-backed Yemeni government forces have retaken several key positions along the Red Sea from the Iran-backed Houthis. The developments could eventually support higher crude flows through the Bab el-Mandeb Strait, another critical route for global energy shipments.
The Houthis, however, responded by targeting key sites in Saudi Arabia, including an Aramco refinery in Riyadh.
In the United States, industry data showed crude inventories fell by 2.1 million barrels last week. Official inventory figures were due later on Wednesday.
Planned emergency oil releases by the Group of Seven also limited gains in crude prices, as markets balanced the prospect of additional supplies against escalating geopolitical risks.
Analysts said the oil market remained caught between two competing forces: improving physical supply flows and the growing threat of disruptions around key Middle Eastern shipping routes.
–ENDS–
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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