According to data from the US Department of Energy, crude oil stocks in the Strategic Petroleum Reserve (SPR) declined to 282.7 million barrels last week, marking their lowest level since October 1982. The decline comes amid growing concerns over energy supplies in the Gulf region and withdrawals under an agreement to release 172 million barrels of oil. The Iran war has played a significant role in intensifying these supply concerns.
International crude oil prices continue to rise. Brent crude futures gained 52 cents, or 0.47%, to reach $110.07 per barrel by 0628 GMT. In the previous session, prices had climbed to $110.70 per barrel, their highest level since May 20. Meanwhile, WTI crude oil was trading at around $100 per barrel, while Murban crude had crossed the $111-per-barrel mark.
The conflict has also heightened concerns about the safety of energy shipments and infrastructure across the region. According to oil and gas vessel-tracking firm Kpler, at least 18 ships have been attacked over two weeks, keeping a risk premium in oil prices.
Yemen's Iran-backed Houthi rebels have claimed responsibility for attacks on Saudi Arabia's energy sites, airports and military installations. The sites targeted included an Aramco facility in Yanbu and the Shaybah oil site.
On Monday, a Houthi attack on a government security forces training camp in Yemen's Shabwa province killed 58 people and injured more than 200. The incident has further heightened concerns about regional stability and the security of energy supplies.
ING analysts have said that the oil market continues to carry a substantial risk premium amid the instability. This premium could gradually decline if oil flows remain smooth, but there have been no signs of easing instability so far.
Uncertainty surrounding sanctions and tariffs related to Russia has also influenced market sentiment. US President Donald Trump issued an executive order to lift major Russia-related sanctions and tariffs but said he had not yet made a final decision. Secretary of State Marco Rubio said officials needed more time to assess the situation.
The International Energy Agency reported that Russian crude oil production increased by 65,000 barrels per day in September to 8.43 million barrels per day. However, production remained approximately 870,000 barrels per day below the level recorded a year earlier.
Tim Waterer, chief analyst at KCM Trade, said additional diesel supplies from Russia had provided some relief to the market. However, traders remain focused on the risk of further damage to energy infrastructure in the Middle East.
With the US Strategic Petroleum Reserve at its lowest level since October 1982, crude prices elevated and attacks on energy-related targets continuing, the Iran war has intensified uncertainty over global oil supplies. The combination of reduced emergency reserves and persistent regional instability presents a growing challenge for energy markets and the Trump administration.
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