Oil Prices Edge Higher on Supply Shock, Brent Rises 4%
Oil prices edged higher on Thursday amid a supply shock, as escalating tensions in the Middle East, hurricane-related disruptions to US oil and gas production, and a larger-than-expected decline in US crude inventories heightened concerns about global supply.
International benchmark Brent crude futures for December delivery increased by about 4% to $103.93 per barrel, up from $100.20 at the previous close. US benchmark West Texas Intermediate (WTI) crude futures for November delivery rose 2.6% to $91.29 per barrel from $89.01.
A tanker was struck by multiple projectiles north of Qatar on Wednesday, with casualties reported, the UK Maritime Trade Operations (UKMTO) said.
UKMTO said it received a report of the incident at around 1900 GMT, approximately 51 nautical miles (94 kilometres) north of Madinat ash Shamal, Qatar.
“A tanker has reported being struck by multiple projectiles. Casualties have been reported,” the agency said, adding that authorities were investigating the incident.
The incident added to concerns over the security of shipping and energy supplies in the region.
Oil prices also remained elevated amid reports that Washington was considering the timing of potential new military strikes against Iran.
According to media reports on Wednesday, the White House asked the Pentagon to develop options for strikes on Iranian targets that could be carried out before the Nov. 3 midterm elections.
Asked about the reports, a Pentagon official told Anadolu: “The Department’s job is to develop and present military options to the president.” The official neither confirmed nor denied the reports.
The Atlantic reported, citing two administration officials, that the scale and targets of any potential strikes, as well as whether the administration would ultimately proceed with military action, remained under discussion.
The magazine also reported that Trump’s advisers believed the most appropriate time for renewed strikes would be after the midterm elections rather than before.
Separately, Axios reported, citing US officials, that the Pentagon had instructed US Central Command (CENTCOM) several days earlier to finalize preparations for resuming major combat operations against Iran.
The directive did not specify a date for any potential strikes, according to the report.
US President Donald Trump also said Wednesday that his special envoy Steve Witkoff was making progress in negotiations with Iran, while signaling that reaching an agreement was not his preferred outcome.
“He’s working on the Iran deal and doing very well. I think the deal isn’t really something that I want to do, but they’re willing to offer us anything to stop,” Trump told supporters at a campaign rally in San Antonio, Texas.
The developments added upward pressure on oil prices by heightening market concerns over potential disruptions to Middle East supply.
– US oil stocks decline amid hurricane-related supply disruptions
Meanwhile, a larger-than-expected decline in US crude oil inventories further reinforced supply concerns in the world’s largest oil-consuming country.
US commercial crude oil inventories fell by 3.2 million barrels, or 0.7%, to 424.1 million barrels in the week ending Oct. 2, according to data released by the Energy Information Administration (EIA).
The decline contrasted with market expectations for an increase of approximately 1.9 million barrels. Crude oil stocks in the Strategic Petroleum Reserve, which are excluded from commercial inventories, also fell by around 800,000 barrels to 283 million barrels.
Separately, Tropical Storm Isaias strengthened into the first hurricane of the 2026 Atlantic season over the Gulf of Mexico, raising concerns over disruptions to US oil and natural gas production.
According to the US Marine Minerals Administration (MMA), approximately 25.08% of oil production and 16.37% of natural gas output in the Gulf of Mexico had been shut in as of Wednesday as a precaution against Hurricane Isaias.
Six refineries operated by Shell, Valero Energy, Marathon, PBF Energy and Chevron could also be affected as the hurricane approaches the US Gulf Coast, according to media reports.
Oil Prices Ease on Supply Boost Expectation, Brent Dips to $101
