Oil prices rose sharply on Thursday as renewed supply concerns affected global energy markets.
Brent crude increased 4.81% from Wednesday’s closing price. It reached $105.02 per barrel during Thursday’s trading.
West Texas Intermediate also recorded a strong increase. WTI prices climbed 5% to $92.69 per barrel.
Oil prices had moved lower earlier this week. The decline followed an announcement by the International Energy Agency.
The agency said it would decide how to release 100 million barrels of crude oil and fuel. The reserves were agreed upon by G7 countries.
However, markets had already largely priced in the planned release. This reduced its immediate impact on crude prices.
The latest increase came as new concerns emerged over oil supply routes. Attacks on oil tankers in the Strait of Hormuz pushed prices higher.
According to Reuters, 12 attacks were recorded between September 28 and October 2. This was the highest weekly total since the Iran war began.
The Strait of Hormuz is a major route for global energy shipments. Any disruption in the waterway can create concerns about international oil supplies.
Tanker traffic through the waterway has already declined significantly. Data from Kpler showed a sharp drop in flows on Tuesday.
Tanker movements reached their lowest level since late July, according to the data. The decline has added pressure to already uncertain energy markets.
Supply concerns are also increasing in the Gulf region. Operators have started reducing production ahead of an approaching storm.
Refineries in the region are also preparing for the expected weather conditions. These developments have created another potential risk for oil supplies.
Market participants are now watching shipping activity closely. They are also monitoring production levels across the Gulf region.
The combination of tanker attacks and weather risks has increased market uncertainty. Traders are assessing how long the supply concerns could continue.
Oil prices remain sensitive to developments around major shipping routes. Further disruptions could create additional volatility in international crude markets.
Brent crude has now moved above the $105 per barrel level. WTI is also trading close to $93 per barrel.
The latest gains highlight the market’s reaction to potential supply disruptions. Investors will continue monitoring regional developments for further changes.
The planned release of crude and fuel reserves could still influence prices. However, its effect may depend on the scale of future supply disruptions.
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For now, oil markets remain focused on tanker traffic and Gulf production. Further developments could determine the direction of crude prices in coming sessions.
