ISLAMABAD: Global oil prices rose by more than $1 per barrel on Wednesday, October 21, with Brent crude climbing above $110 as escalating tensions in the Middle East raised concerns over potential supply disruptions, while declining US petroleum inventories added pressure to the market.
According to Reuters, Brent crude futures gained $1.59, or 1.5 percent, to reach $110.38 per barrel at 0350 GMT.
US West Texas Intermediate (WTI) crude also advanced $1.36, or 1.4 percent, to $99.18 per barrel, reflecting renewed concerns about global oil supplies.
The increase followed a decline in prices during the previous trading session, when reports emerged of discussions on mediation efforts during a meeting between Iran’s president and Pakistan’s army chief in Tehran.
Brent crude had earlier retreated after reaching its highest level in five months, highlighting the volatility gripping international energy markets amid regional geopolitical uncertainty.
Analysts said concerns about possible disruptions to Middle Eastern oil supplies remained a major factor influencing market sentiment.
The region plays a significant role in global energy production and transportation, making oil prices particularly sensitive to developments that could affect supply routes or production facilities.
Suvro Sarkar, head of energy research at DBS, noted that crude oil prices had experienced considerable fluctuations over recent trading sessions.
The latest increase was also supported by reports of declining crude oil and petroleum product inventories in the United States, indicating tighter supply conditions in the world’s largest oil-consuming economy.
Lower inventories can support prices when traders anticipate stronger demand or reduced availability of petroleum products.
The renewed rally comes as energy markets continue to assess geopolitical developments in the Middle East alongside changes in global supply and demand.
For oil-importing economies, including Pakistan, sustained increases in international crude prices could raise import costs and add pressure to domestic fuel pricing, depending on exchange rates, taxation and government pricing decisions.
Market participants remain focused on developments in the Middle East and US inventory trends for further indications of the direction of crude oil prices.