The price of Brent crude oil increased to $111.64 per barrel, which is $2.82 or 2.59% higher than the previous day. This price increase occurred amid concerns about new tensions in the Middle East and disruptions in crude oil supply.
Analysis of the Oil Market
In trading on Thursday (October 21), U.S. West Texas Intermediate crude oil also rose by $2.24 or 2.31%, trading at $99.39 per barrel. Analysts at ING Bank stated that demand for oil remains high, and the price of Brent oil returned above $110 per barrel following recent conflicts in Saudi Arabia.
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Impact of Inventory Reductions
The U.S. Energy Information Administration reported that the country's crude oil inventories fell by 3.06 million barrels to 412.5 million barrels last week, while a decrease of 820,000 barrels was expected. This reduction in inventories has a direct impact on oil prices and market fluctuations.
Additionally, inventories of petroleum products, including diesel and heating oil, increased by 1.68 million barrels to 104.3 million barrels, whereas a decrease of 1.16 million barrels was anticipated.
The U.S. Department of Energy also announced that the government plans to offer about one-third of the strategic 1 million barrel heating oil reserves as a loan. This action is aimed at controlling high diesel prices due to shortages caused by the U.S. and Israeli regime's war against Iran and military conflicts between Russia and Ukraine.
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