Oil prices jumped by more than $2 on Wednesday, October 21, after Iran said there were no particular grounds to expect diplomatic progress in relations with the United States. UNN reports this, citing Reuters.
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As a result, benchmark Brent crude remained near five-month highs, receiving additional market support from a decline in crude oil and oil product inventories, the publication writes.
Brent crude futures rose by $2.06, or 1.9%, to $110.85 per barrel at 10:48 GMT (13:48 Kyiv time). U.S. West Texas Intermediate (WTI) crude rose by $2.13, or 2.2%, to $99.95.
In the previous session, Brent crude reached a five-month high, while WTI crude hit a six-month peak, after which prices fell amid discussions of mediation efforts at a meeting between Iran's president and Pakistan's army chief in Tehran.
On Wednesday, Iranian Foreign Minister Abbas Araghchi told the Financial Times that Iran was fully prepared for self-defense, while the country's President Masoud Pezeshkian told state media that the United States could not expect dialogue while blocking and threatening Iran.
"Neither of the two geopolitical conflicts underpinning the market's bullish sentiment (expectations of growth — ed.) has shown any signs of de-escalation," PVM analysts said, according to the publication, "referring to the Middle East war and the Russia-Ukraine war.".
According to Kpler, at least 18 attacks on vessels have been recorded over the past two weeks, while LSEG analysts warned that Iran is targeting tankers far beyond the Strait of Hormuz, penetrating the Gulf of Oman and threatening oil loadings from the Persian Gulf and ship-to-ship transfers supporting regional loadings.
On Monday, the Iran-backed Houthis claimed responsibility for attacks on a Saudi Aramco facility in Yanbu, the Shaybah oil field, and the airports in Riyadh and Abha in Saudi Arabia.
In the United States, two Energy Department officials said on Tuesday that they were working with refineries around the world to increase fuel production.
U.S. crude oil inventories fell by 4.9 million barrels in the week ending October 16, while gasoline and distillate inventories also declined, market sources said, citing API data.