Key Takeaways
- • Brent crude rose 0.4% to $116.24 a barrel and WTI gained 0.3% to $102.07 on Tuesday, according to Reuters, reversing earlier declines of about 1%.
- • Brent surpassed $117 last week after Iranian attacks on tankers around the Strait of Hormuz, leaving prices near six-month highs.
- • Flows through the Strait of Hormuz are running at roughly 60% of normal levels, and Gulf crude exports have fallen for four consecutive weeks, per ANZ Research.
- • Global distillate inventories are nearly 5% below their five-year average, tightening supply availability.
- • October has recorded the highest number of attacks on commercial shipping around the Strait of Hormuz since 2017, while renewed Houthi attacks on Saudi oil infrastructure add further disruption risk.
Summary
Oil prices edged higher on Tuesday as renewed Houthi attacks on Saudi Arabia offset hopes of diplomatic progress in the Middle East, keeping crude markets volatile amid continued disruption to regional supplies, according to Reuters. Brent crude futures rose 0.4% to $116.24 a barrel, while US West Texas Intermediate gained 0.3% to $102.07, reversing earlier declines of approximately 1%. Prices remain near six-month highs after Brent surpassed $117 last week following Iranian attacks on tankers around the Strait of Hormuz.
Diplomatic talks between Saudi Arabia, Turkey, Pakistan and Iran on Monday offered some prospect of easing regional tensions. However, renewed Houthi attacks on Saudi oil infrastructure underscored the risk of further supply disruptions. October has recorded the highest number of attacks on commercial shipping around the Strait of Hormuz since 2017, keeping the waterway a critical source of uncertainty for global energy markets.
Supply constraints continue to support elevated prices. ANZ Research reports that Gulf crude exports have declined for four consecutive weeks and that flows through the Strait of Hormuz are running at approximately 60% of normal levels. Global distillate inventories are also nearly 5% below their five-year average, adding to concerns over supply availability and sustaining volatility across energy markets.
Diplomatic talks between Saudi Arabia, Turkey, Pakistan and Iran on Monday offered some prospect of easing regional tensions. However, renewed Houthi attacks on Saudi oil infrastructure underscored the risk of further supply disruptions. October has recorded the highest number of attacks on commercial shipping around the Strait of Hormuz since 2017, keeping the waterway a critical source of uncertainty for global energy markets.
Supply constraints continue to support elevated prices. ANZ Research reports that Gulf crude exports have declined for four consecutive weeks and that flows through the Strait of Hormuz are running at approximately 60% of normal levels. Global distillate inventories are also nearly 5% below their five-year average, adding to concerns over supply availability and sustaining volatility across energy markets.
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