15.10.202619:45:16UTC+00Crude Gains on Renewed Supply Disruptions

Crude oil climbed toward $98 a barrel on Thursday as supply risks in the Middle East intensified. Attacks on commercial vessels in the Strait of Hormuz resulted in the sinking of a Singapore-flagged container ship and sent tanker rates in the Persian Gulf to record highs. The US military has reportedly prepared plans for new strikes on Iran, which could involve the MOAB, the largest non-nuclear explosive in its arsenal. In response, Iran said it was “counting the moments” until it could strike US warships. Prices also gained support from an 8-million-barrel draw in US crude inventories in the week ended October 9. The IEA cautioned that tight diesel markets may persist into next year, while attacks on Saudi Arabia threatened to derail the recovery in oil supply. At the same time, the US is said to be weighing an easing of sanctions on “shadow fleet” vessels carrying Russian crude and refined products, in a bid to alleviate global supply pressures.