Oil prices moved higher on Thursday as concerns over disruptions to crude supplies increased amid a rise in attacks on commercial vessels in the Gulf and the Strait of Hormuz.
Brent crude futures gained $2.28, or 2.28%, to reach $102.28 a barrel, while US West Texas Intermediate crude rose $1.66, or 1.88%, to $89.94 by 4:27am GMT.
The latest increase came as markets continued to assess the risks surrounding oil shipments from the Middle East. The Strait of Hormuz is a critical energy route, with shipments through the waterway accounting for around one-fifth of global oil and fuel supplies before the conflict escalated.
Shipping risks have intensified in recent weeks. Tanker attacks in the Strait of Hormuz reached their highest weekly level since the conflict began last week, raising concerns over the cost and safety of transporting crude and petroleum products.
A tanker travelling north of Qatar was struck by several projectiles in the latest reported incident. Maritime authorities said the attack resulted in casualties.
Analysts said the growing security risks were keeping oil prices elevated. They pointed to restricted fuel flows, higher transportation costs and the possibility of further escalation as key factors affecting the market.
The International Energy Agency’s decision to accelerate the release of oil stocks has provided some additional supply to the market. However, analysts said the move would mainly make barrels already included in an earlier strategic stock release plan available sooner rather than creating new production capacity.
Oil markets are also being affected by weather-related disruptions in the United States.
Hurricane Isaias has threatened offshore production in the Gulf of Mexico, prompting major energy companies to reduce operations. Shell and Chevron announced cuts to offshore activity as the storm approached.
US Gulf producers had shut in about 25% of oil production and more than 16% of natural gas output because of the storm, according to government data.
US inventory figures also offered support to oil prices. Crude stockpiles fell by 3.2 million barrels during the week ending October 2, reaching 424.1 million barrels. The decline was larger than analysts had expected.
