Oil Jumps 2% as Iran Steps Up Attacks on Hormuz Tankers
Oil Price
O
Oil Price
Original Source
Brent crude surged above $105 per barrel as Iran intensified attacks on tankers transiting the Strait of Hormuz, while U.S. Gulf Coast operators shuttered production ahead of an approaching storm. The sharp price jump reflects growing concerns over potential disruptions to global oil supplies through one of the world's most critical shipping lanes.
Brent crude swung back above $105 per barrel today as reports flow in about increasingly frequent Iranian attacks on tankers in Hormuz while U.S. Gulf Coast operators began shutting in production and prepping refineries ahead of an approaching storm.
At the time of writing, Brent crude was trading at $105.02 per barrel, up by over 4.81% from Wednesday’s close...
While West Texas Intermediate was changing hands for $92.69 per barrel, up by 5% from Wednesday.
Earlier this week, oil moved lower on the latest update from the International Energy Agency, which said it would soon decide on how exactly to start releasing those 100 million barrels in crude and fuels the G7 agreed on last week. Some observers noted this is not a new release, however, but a part of a plan announced in March for the release of some 400 million barrels from inventory to cushion the war blow on fuel prices.
In other words, that release has been pretty much priced in already, so the news about Iran stepping up attacks on tankers in the Strait of Hormuz served to push prices higher. According to new data from a U.S. Navy-led information outlet, there were a dozen attacks between September 28 and October 2 alone, Reuters reported earlier today.
Because of these attacks, tanker traffic in the critical waterway has once again dropped sharply, with flows this Tuesday at the lowest since late July, according to Kpler. However, producers are running out of options.
“In the past, such attacks have resulted in a reduction in shipments from the Persian Gulf. This time around, producers appear to be willing to take the risk of their vessels being damaged, as there is no alternative way to get their oil to international markets,” ANZ analyst Daniel Hynes said as quoted by Reuters today.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com
EU Delays Methane Rules, Opens Refinery Talks as Fuel Prices Hit Records
Gulf Producers Say Importers Should Share the Cost of Hormuz Workarounds
Apollo Joins $11.5 Billion Race for German Gas Giant Uniper
At the time of writing, Brent crude was trading at $105.02 per barrel, up by over 4.81% from Wednesday’s close...
While West Texas Intermediate was changing hands for $92.69 per barrel, up by 5% from Wednesday.
Earlier this week, oil moved lower on the latest update from the International Energy Agency, which said it would soon decide on how exactly to start releasing those 100 million barrels in crude and fuels the G7 agreed on last week. Some observers noted this is not a new release, however, but a part of a plan announced in March for the release of some 400 million barrels from inventory to cushion the war blow on fuel prices.
In other words, that release has been pretty much priced in already, so the news about Iran stepping up attacks on tankers in the Strait of Hormuz served to push prices higher. According to new data from a U.S. Navy-led information outlet, there were a dozen attacks between September 28 and October 2 alone, Reuters reported earlier today.
Because of these attacks, tanker traffic in the critical waterway has once again dropped sharply, with flows this Tuesday at the lowest since late July, according to Kpler. However, producers are running out of options.
“In the past, such attacks have resulted in a reduction in shipments from the Persian Gulf. This time around, producers appear to be willing to take the risk of their vessels being damaged, as there is no alternative way to get their oil to international markets,” ANZ analyst Daniel Hynes said as quoted by Reuters today.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com
EU Delays Methane Rules, Opens Refinery Talks as Fuel Prices Hit Records
Gulf Producers Say Importers Should Share the Cost of Hormuz Workarounds
Apollo Joins $11.5 Billion Race for German Gas Giant Uniper
🔗 Share Article
Tags:#الطاقة#النفط#إيران#مضيق هرمز#أسعار النفط#الخليج
Source: Oil Price
For Context
Related reads from the same topic or latest developments