WTI Oil prices bounced up strongly on Thursday as clouds gather over the Middle East conflict, resurfacing market concerns about supply restrictions. The US benchmark West Texas Intermediate (WTI) Oil appreciates about 1.9% on the day so far, trading above $99,00, amid fresh threats from Iran to the US military and speculation that Israel might enter the conflict again.
The Iranian Islamic Revolutionary Guard Corps (IRGC) navy affirmed earlier on Thursday that Washington’s continuing insistence on pushing vessels to cross the Strait of Hormuz by routes deemed illegal might lead to attacks on US bases in the region.
The IRGC also affirmed that four vessels involved in illegal oil transfers in the Persian Gulf were hit by its forces, while three other vessels hit sea mines while attempting to cross the Hormuz sea corridor.
Saudi oilfields remain under threat
These comments follow a new drone attack by the Yemeni Houthi militias, a close ally of Tehran, on Aramco’s Shaybah Oilfield, which has reportedly killed two people and reactivated concerns about supply disruptions of Saudi Oil.
To make things worse, a report by The New York Times citing US officials affirms that the US and Israel might be planning a new round of major airstrikes on Iran, after the US mid-term elections, aimed at forcing Tehran to make concessions at the negotiating table.
On Wednesday, data released by the US Energy Information Administration (EIA) showed that commercial Oil inventories declined by 3,1 million barrels in the week ending October 16. These figures largely exceed the 800K barrel drawdown forecasted by market analysts and provides additional impulse to prices.
