Oil prices moved higher on Thursday, October 8, as traders weighed fresh risks to crude supplies from the Middle East and the United States. Rising attacks on vessels around the Persian Gulf and Strait of Hormuz, along with offshore production cuts in the US Gulf of Mexico, supported prices.
According to Reuters, Brent crude futures gained $2.28, or 2.28%, to $102.28 per barrel at 04:27 GMT. US West Texas Intermediate (WTI) crude rose $1.66, or 1.88%, to $89.94 per barrel.
Why are oil prices rising?
The latest gains come after crude prices declined a day earlier following an International Energy Agency (IEA) decision to accelerate the release of oil reserves and prioritise diesel supplies. The move is part of a plan launched in March as governments attempt to tackle high fuel prices and supply disruptions linked to the war with Iran.
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However, concerns over physical supplies remain, particularly because of the growing risks to vessels transporting oil through the Persian Gulf and the Strait of Hormuz.
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Strait of Hormuz attacks increase
The Strait of Hormuz has become a major source of uncertainty for the global oil market. Before the war, roughly 20% of the world’s oil and fuel volumes passed through the waterway.
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