Crude Oil prices continue to rally on Thursday, with Brent crude trading above $111 per barrel, as fresh Houthi attacks in Saudi Arabia heightened concerns over regional security, shipping routes and oil supplies.
Brent crude oil prices climbed 2.62 per cent to around $111.72 a barrel at around 7:45 p.m., while US West Texas Intermediate (WTI) crude rose towards $98.98, following deadly attacks in Saudi Arabia. Meanwhile, the Indian crude basket for October stood at $120.09.
The developments also prompted the United States to order some diplomats and their family members to leave American missions in the Kingdom.
Aamir Makda, Commodity & Currency Analyst – Technical Research, Choice Broking said, “Brent oil has remained indecisive in previous session where price has toggled between $107 – $113. However, price has still maintained above $110 a barrel. Key support would be at 20-DEMA level placed at 9129 and on the other side, immediate resistance would be at 9593. We are expecting Sideways-to-Bullish trend in Crude oil ahead of inventory release in evening.”
As per the Kpler data, the threat to energy supplies has extended to maritime routes beyond the Strait of Hormuz and at least 18 attacks on shipping over the past two weeks.
Further, the LSEG analysts warned that Iran was targeting tankers further afield, including in the Gulf of Oman. Such attacks were jeopardising Gulf crude loadings and ship-to-ship transfers that support regional loadings.
As per the data released by the US Energy Information Administration (EIA), US crude inventories declined by 3.06 million barrels last week to 412.5 million barrels.
Distillate inventories, which include diesel and heating oil, increased by 1.68 million barrels to 104.3 million barrels during the week. Analysts had expected these stockpiles to fall by 1.16 million barrels, EIA data showed.
In a recent development in the ongoing tussle, Russian President Vladimir Putin has agreed to resume US-mediated peace talks with Ukraine as soon as next month, the Kremlin said, after Putin met US envoy Steve Witkoff in Washington’s latest push to stop Europe’s bloodiest conflict since World War Two.
