Brent crude oil closed the month of October with a 13.6% gain, while WTI rose by 15.2%
Amid fears of escalating tensions involving Iran, oil prices surged by 2%, reaching their highest level in six months—a peak not seen since the end of April. Market unease is intensifying as the U.S. midterm elections approach; investors are bracing for the possibility of an Iran-centered conflict escalating in the aftermath of these elections.
The December Brent crude contract, which expired on Friday, reached a high of $118 before closing at $117.64 per barrel—an increase of $2.76 (2.4%). The more actively traded January contract rose by $2.63 to reach $113.43.
The price of U.S. West Texas Intermediate (WTI) crude oil also climbed, rising by $2.12 (2.08%) to reach $104.12 per barrel.
Brent crude ended October with a 13.6% gain, while WTI saw an increase of 15.2%.
On Friday, it was reported that a tanker in the Strait of Hormuz was targeted by explosive devices placed from a small boat; it remains unclear who was behind the attack.
According to maritime sources, this marks the first successful attack in this waterway—since the onset of the conflict between the U.S./Israel and Iran in February—in which explosives (magnetic mines) were attached to a ship's hull from a small vessel. On Thursday,
Iranian-backed Houthi militants in Yemen announced that they had carried out attacks on several locations in Saudi Arabia, including the major Ras Tanura oil refinery, the Rabigh refinery, and a production facility in Abqaiq belonging to the state-owned oil company, Saudi Aramco.
In a statement released on Friday, the U.S. Embassy in Riyadh announced that, citing Houthi attacks on civilian airports and other critical infrastructure, non-essential government employees and their family members have been instructed to leave Saudi Arabia, effective October 23.
The Saudi-led coalition also reported that it had intercepted a cruise missile launched by the Houthis toward the western region of the kingdom.
Meanwhile, according to reports, Qatari mediators returned to Tehran on Friday as part of coordinated efforts aimed at reaching an agreement between the United States and Iran.
Oil prices may experience increased volatility over the coming weeks, driven by recent elections in Israel and the upcoming U.S. midterm elections on November 3.
According to sources, Saudi Arabia’s crude oil exports in October were higher than in September, despite Iran’s attacks on maritime traffic in the Gulf and the strikes on Saudi oil facilities claimed by the pro-Iranian Houthi militants in Yemen.
The number of active oil drilling rigs in the United States—a key indicator of future production—increased by two. In a report released on Friday, the U.S. Energy Information Administration (EIA) stated that U.S. crude oil production rose in August, while demand for crude oil and petroleum products declined.
Meanwhile, Libya’s National Oil Corporation announced that an armed group had closed a valve on the main Hamada crude oil pipeline—which connects the Hamada field to the Zawiya refinery—on Friday. The corporation stated that the closure of the valve has halted the flow of approximately 15,000 barrels of oil per day.
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