Oil prices moved higher on Wednesday, 21 October, as escalating tensions in the Middle East raised concerns about potential supply disruptions and declining US oil inventories provided further support to crude markets.
Brent crude futures rose by around 1.5% to $110.40 per barrel, while US West Texas Intermediate (WTI) crude increased by approximately 1.5% to $99.27 per barrel during morning trading. The gains followed a decline in the previous session, when prices eased after discussions about possible diplomatic mediation between Iran and Pakistan raised hopes of progress towards a resolution.
Alongside geopolitical risks, declining US inventories have provided additional support for crude prices. Market sources citing American Petroleum Institute data reported that US crude oil stocks fell by 4.9 million barrels in the week ended 16 October. Inventories of refined petroleum products, including gasoline and distillates, were also reported to have declined.
The reduction in available stocks has attracted attention as concerns about regional supply routes persist. Lower inventories can provide support to prices when market participants are already concerned about potential interruptions to production or transportation. The scale of the reported drawdown therefore adds another factor to the market’s assessment of near-term supply conditions.
Criterium Energy Ltd (TSXV:CEQ) is Canadian-based upstream energy company focused on the aggregation and sustainable development of assets in Southeast Asia that can deliver scalable growth and cash flow generation.
