(Oct 22) : Oil rose following a deadly attack on a Saudi oil field, raising concerns that escalating hostilities in the Middle East could hit supply even as exports through the Strait of Hormuz have accelerated in recent months.

West Texas Intermediate climbed toward US$98 a barrel after swinging in a US$4 range Wednesday. Brent jumped above US$110 in post-settlement trading. A drone strike on Saudi Aramco’s Shaybah field killed two people, although operations were unaffected. Meanwhile, the US has ordered the departure of some personnel and family members from American embassies in the kingdom.

Global benchmark Brent has surged almost 80% this year after the US-Iran war disrupted energy flows from the Persian Gulf. Still, exports have increased recently as tankers have switched off their transponders to avoid detection. Shipments of crude have returned close to prewar levels, according to estimates from traders and banks, although oil-product flows remain constrained.

The squeeze has been more acute in refined products, most notably diesel, and has been compounded by Ukrainian strikes on Russian refineries. Governments are tapping stockpiles to ease tightness, while US President Donald Trump is pushing measures to lower energy prices ahead of next month’s midterm elections, including Russia-related tariff waivers, a diesel deal with Moscow and the sale of sanctioned tankers.

Separately, US crude inventories dropped by just over 3 million barrels, with another 300,000 barrels withdrawn from the Strategic Petroleum Reserve, according to the Energy Information Administration. Distillate inventories rose by almost 2 million barrels, offering some relief to diesel and heating oil markets strained by tight supplies and elevated prices.

uploaded by Isabelle Francis