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2026.10.1620:24:36UTC+00Oil Surges Above $100 on Rising Supply Risks

Crude oil prices surged past $100 a barrel on Friday, climbing more than 11% over the week amid tightening supply and robust fuel demand from the shipping sector. Producers are contending with higher freight rates and increased risk premiums to move cargoes through the Strait of Hormuz, keeping uncertainty over future regional supply elevated. Recent Iranian strikes on tankers in the strait have sharply curtailed oil flows: in the week to October 13th, average daily volumes dropped to 11.62 million barrels, down from a baseline of 17.15 million barrels. Heightened security risks in the Persian Gulf have been a major driver of the price rally. At the same time, Ukrainian drone attacks on Russian refineries have further restricted fuel supply. Adding to the upward pressure, US crude inventories declined by 8.56 million barrels in the week ended October 9th.

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