Oil Prices Surpass $110 Amid Middle East Supply Concerns

On October 22, crude oil prices increased, with Brent crude reaching $110.30 per barrel and West Texas Intermediate at $99.12 per barrel, both up over one percent from the previous day. This rise is attributed to traders' concerns about the stability of oil flows from the Middle East.

A report from the Wall Street Journal indicated that oil flows from the region had exceeded pre-war levels, averaging 24 million barrels daily in the week ending October 18. This was supported by data from Kpler, which estimated Hormuz flows at 8.5 million barrels daily due to intensified Iranian attacks.

DBS analyst Suvro Sarkar commented on the market dynamics, suggesting a mix of profit-taking and hopes for a brokered deal, countered by the reality that any agreement remains distant. Additionally, inventory data from the American Petroleum Institute showed continued drawdowns in U.S. crude and products, further influencing market sentiment.