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Oil
Source: Newsmaker.id
Crude oil prices edged lower on Friday (October 16) but remained on track for a weekly gain, driven by supply uncertainty from the Middle East and a larger-than-expected decline in U.S. crude inventories. Brent crude was recorded at US$105.39 per barrel, while West Texas Intermediate (WTI) stood at US$97.75 per barrel. For the week, Brent rose by approximately 0.44%, while WTI surged by 5.81%.
The earlier rise in WTI was fueled by a significant drop in U.S. crude stocks following production disruptions caused by storms. However, market attention has now shifted back to the Strait of Hormuz, where attacks have intensified over the last 10 days. Data from Kpler indicates that, as of October 13, the volume of oil passing through the Strait of Hormuz averaged only about 11.62 million barrels per day—roughly 68% of the normal 17.15 million barrels per day.
Supply pressures are also mounting due to escalating conflicts involving Iran, the Houthi group, and Saudi Arabia. Attacks on vessels near the Strait of Hormuz threaten to hinder the recovery of oil flows from the Gulf region, while Houthi strikes on Saudi infrastructure add further risk to regional energy supply chains.
Meanwhile, the International Energy Agency (IEA) has agreed to release over 20 million barrels of diesel into the market, alongside remaining volumes from previous emergency reserve releases. This move is intended to boost supply and ease energy prices, though market reactions suggest that investors continue to view geopolitical risks as the more dominant factor.
The United States is also considering easing sanctions on certain vessels—part of a so-called "shadow fleet"—that have previously transported oil and energy products from Russia, Iran, and Venezuela. Such a policy shift could potentially lower global shipping costs and improve the efficiency of oil distribution. Newsmaker Analysis: Oil prices remain volatile as the market grapples with a tug-of-war between supply risks and efforts to boost global oil availability. A decline in U.S. inventories and disruptions to the flow of oil through the Strait of Hormuz are providing support to prices, while the release of strategic reserves and the potential easing of sanctions could cap further gains. As long as there is no agreement to de-escalate U.S.-Iran tensions and ensure the smooth passage of vessels through the Strait of Hormuz, a geopolitical risk premium is likely to persist. (asd)
Source: Newsmaker.id