Oil
Crude prices head for weekly gain on Hormuz disruptions
Global crude benchmarks are set for weekly increases driven by Middle East security risks and lower United States inventories.
Key points
- Brent and WTI crude both track toward weekly gains.
- Tanker attacks in the Strait of Hormuz reduce daily oil flows significantly.
- United States inventories drop by 8.56 million barrels.
What happened
Crude oil prices are heading toward a weekly increase, supported by declining United States reserves and ongoing security incidents in the Strait of Hormuz, according to Oilprice.com. Brent traded at $105.48 per barrel, while West Texas Intermediate changed hands at $97.40 per barrel. Both benchmarks retreated from earlier peaks but maintained positions above the previous week's close.
Data cited by Reuters from Kpler showed that daily oil shipments through the Strait of Hormuz dropped to 11.62 million barrels during the week leading to October 13, down from a normal level of 17.15 million barrels per day. This decline followed recurring attacks on vessels by Iranian forces.
Why it matters
According to ING commodity analysts Warren Patterson and Ewa Manthey, the market has incorporated a significant risk premium due to doubts regarding the stability of Persian Gulf transit routes. They noted that flows would need to recover sustainably for the market to shed that premium entirely, which likely requires a formal agreement between Washington and Tehran.
Efforts to mitigate supply pressures have produced limited results. The International Energy Agency proceeded with plans to release 100 million barrels from emergency reserves, finalising an arrangement made earlier in the year. Meanwhile, proposals to ease freight rates by lifting restrictions on specific shadow fleet tankers face hurdles related to insurance and active deployment status, as highlighted by ING.
What comes next
Market observers continue to monitor developments in the Middle East and US inventory reports to gauge future price direction. Without a resolution to regional tensions, pricing structures are expected to retain elevated risk components.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
