FX.co ★ Crude Oil Rises to 1-Month High

Crude oil extended its advance above $98 per barrel on Thursday, the highest level in a month, as markets remained focused on escalating supply risks in the Middle East. Repeated attacks on commercial vessels transiting the Strait of Hormuz culminated in the sinking of a Singapore-flagged container ship, prolonging record-high tanker rates in the Persian Gulf. These developments further undermined expectations for a meaningful increase in oil exports from GCC producers, intensifying concerns over the global supply outlook. At the same time, Houthi missile and drone strikes on energy facilities in Saudi Arabia contributed to additional export disruptions, with some tankers reportedly steering clear of their usual loading terminals. Reflecting these strains, EIA data showed that US crude inventories dropped by 8.6 million barrels in the week to October 9th, the steepest weekly decline since February. Meanwhile, volumes in the federal Strategic Petroleum Reserve were unchanged, hovering near their record low.