Global oil prices are ending the week higher amid threats to supplies from the Middle East and declining U.S. inventories. Analysts describe these factors as key, while U.S. President Donald Trump previously blamed Ukrainian strikes on Russian oil refineries for the rise in oil prices. Reuters reports, writes UNN.
Details
As of the morning of October 16, Brent crude was priced at $105.21 per barrel, while U.S. WTI stood at $97.20. Despite a slight decline during Friday, Brent rose 0.44% over the week, while WTI increased by 5.81%.
ING analysts attribute the price increase to instability in the Middle East, the lack of agreements between the United States and Iran, and threats to shipping through the Strait of Hormuz. According to Kpler, oil flows through the strait have fallen to approximately 68% of the usual level due to intensified Iranian attacks.
What is actually affecting oil prices
An additional factor was the decline in U.S. crude oil inventories due to a halt in production caused by the hurricane. It was after this that U.S. WTI rose by more than 3% on Thursday.
Earlier, Trump said that Ukraine's strikes on Russian oil refineries were driving up global oil prices, calling such attacks a "disgrace." He also urged Kyiv to choose other targets.
At the same time, the Reuters article identifies supply risks from the Persian Gulf and the situation with U.S. inventories as the main reasons for the price increase. Analysts do not mention Ukrainian strikes on Russian oil refineries among the key factors driving up oil prices.