Oil rises on Hormuz tensions

Brent crude rose 1.33% to $101.53, while US West Texas Intermediate (WTI) gained 1.26% to $89.39. An attack on a tanker sailing north of Qatar that resulted in fatalities heightened concerns over the security of energy shipments from the Middle East. The International Energy Agency’s (IEA) decision to accelerate the use of strategic oil reserves emerged as a measure aimed at limiting supply risks.

Weekly US oil inventory data also supported the rise in prices. According to the Energy Information Administration (EIA), crude oil inventories fell by 3.2 million barrels to 424.1 million barrels in the week ending October 2, compared with expectations for a 1.7 million-barrel decline. Distillate inventories, including diesel and jet fuel, also dropped to 105.14 million barrels. Analysts noted that releasing oil from strategic reserves could support short-term supply but would not create additional production capacity. Continued security risks in the Strait of Hormuz could maintain upward pressure on global energy prices.