Oil climbs as Hormuz attacks and Hurricane Isaias raise supply concerns
Crude prices rose on Thursday as tanker attacks near the Strait of Hormuz renewed concerns over Middle East shipments and Hurricane Isaias threatened Gulf of Mexico output. Shell and Chevron said they were stopping Gulf production as the storm approached, while U.S. crude stocks also declined in the latest weekly data. Reports of possible further U.S. military action against Iran added to supply-risk concerns.
Why it matters
The production stoppages directly affect Shell and Chevron's Gulf operations, while higher crude prices may offset some lost volumes for oil producers. Deutsche Bank said energy-led inflation pressure showed few indications of easing.
Key facts
- 1The United Kingdom Maritime Trade Operations said a tanker north of Qatar was hit by several projectiles on Wednesday, with casualties reported. investing.com
- 2Shell and Chevron said they were halting Gulf of Mexico production as Isaias neared the region. aol.co.uk
- 3U.S. crude inventories fell by 3.2 million barrels in the week to October 2. investing.com
- 4A Reuters-cited model estimated storm-related Gulf of Mexico output losses could reach 11.2 million barrels over the storm's duration. finance.yahoo.com
- 5The IEA said an accelerated completion of its planned 400 million barrels stock release could add about 100 million barrels to supply. investing.com
Open questions
- Reports gave different intraday Brent price changes and levels: material 1 said 3.9% to $104.07, material 2 said 3.8% to $104, material 4 said 5% to $105, and material 5 said above $105.
- Potential U.S. strikes on Iran were reported as under consideration, with no final decision disclosed.
- It was unclear whether the IEA proposal would release stocks beyond the previously announced amount.
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.