On Tuesday, Brent oil reached a price of $114.70 per barrel, which is more than a dollar lower than previous days. This price drop is due to the potential for an agreement to end the war between the U.S. and Israel against Iran, which has alleviated concerns about supply disruptions. Nevertheless, oil prices remain close to their highest level in the past six months, as attacks on Saudi Arabia have weakened hopes for immediate stability in the region.
West Texas Intermediate Crude Oil
West Texas Intermediate crude oil also fell by one dollar, equivalent to 1%, reaching a price of $100.70 per barrel. This price decline occurs while the prospect of peace in the region still appears fragile. In particular, new attacks by Ansar Allah on Saudi Arabia, one of the key oil producers globally, have raised concerns in the oil market.
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Security Developments in the Strait of Hormuz
October has been recorded as the worst month in terms of the number of attacks on commercial vessels in the Strait of Hormuz and adjacent waterways. According to data collected by a Washington-based think tank, this situation has significantly impacted the oil market and turned the Strait of Hormuz into the focal point of the energy crisis. Before the onset of hostilities in February, about one-fifth of global energy supply passed through this narrow waterway.
Last week, the price of Brent oil surged to over $117 per barrel following a wave of Iranian attacks on tankers around the Strait of Hormuz. This price is the highest level since April and reached the $117 range again on Monday.
In another development, two industry sources close to the matter reported that Russian refineries will increase diesel production in October. This decision follows an agreement between the Kremlin and the U.S. regarding the supply and issuance of export quotas. It seems that this increase in production will contribute to changes in the global energy market and prices.
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