Ammon News - Oil prices rose on Thursday on persistent worries about supply from the key Middle East producing ‌region amid an increase in attacks on shipping in the Gulf and the Strait of Hormuz, while the US cut output as a hurricane menaced offshore production.

Brent crude futures rose $2.28, or 2.28%, to $102.28 a barrel by 0427 GMT. US West Texas Intermediate (WTI) crude futures gained $1.66, or 1.88%, to $89.94.

Prices settled lower on Wednesday after the International Energy ​Agency agreed to accelerate the release of oil stocks and to prioritize diesel supplies under a plan launched in March, as governments ​seek to tackle record fuel prices and supply disruptions caused by the Iran war.

However, threats to oil shipping ⁠in the Gulf and the Strait of Hormuz, which carried shipments equal to about 20% of global oil and fuel before the war, ​have increased in October as the US-Israeli conflict with Iran enters its eighth month.

Attacks on tankers sailing through the Strait of Hormuz hit their ​highest last week of any week since the Iran war began as Gulf producers increased exports. The expansion of attacks is occurring as more crude is flowing out of the Gulf but at higher costs and risk to cargoes and crew.

In the latest attack, a tanker north of Qatar was struck by multiple projectiles, causing casualties, ​the United Kingdom Maritime Trade Operations agency said on Wednesday.

"The frequency of Iranian attacks on ships is now at the highest point since ​the war began, and likely to intensify further," said Saul Kavonic, MST Marquee head of energy.

He noted that "constrained product flows, extreme logistics costs and high likelihood of ‌Iranian ⁠escalation are keeping prices elevated".

ANZ analyst Daniel Hynes said in a note on Thursday the IEA's oil release would likely consist of barrels that were already part of the group's original 400-million-barrel release plan at the start of the Middle East conflict, meaning it does not appear to represent an additional draw on strategic inventories.

"Ultimately, strategic stock releases can augment supply flows temporarily but do not create new production capacity," Hynes said.


Reuters