Oil prices rose on Wednesday as fresh reports of attacks on commercial vessels in the Strait of Hormuz heightened concerns over energy supplies, while increased production by OPEC+ offered a counterpoint to the market's supply risks.
Brent crude futures rose 53 cents to $106.2 a barrel, while US West Texas Intermediate crude gained 49 cents to $94.63.
The latest price movements came after the United Kingdom Maritime Trade Operations (UKMTO) reported that a container vessel and an oil products tanker had been struck by unidentified projectiles while transiting the Strait of Hormuz. The incidents were under investigation, according to the maritime security agency. UKMTO
In comments reported by Reuters, Iranian officials said Tehran had begun using different tactics against vessels it considered to be violating its restrictions on maritime traffic. One official said the changes had been introduced about 10 days earlier, coinciding with an increase in attacks on such vessels.
The officials did not provide detailed evidence to support their account of the new tactics. Their comments come amid heightened tensions over maritime access and security in the Gulf.
The Strait of Hormuz is a critical route for global oil and gas shipments, making disruptions to commercial traffic a key concern for energy markets. Repeated attacks, uncertainty over vessel movements and the risk of further restrictions can increase shipping costs and the potential for supply delays.
However, the impact on oil prices will also depend on the extent of any actual disruption to exports, the availability of alternative supply routes and changes in production by major oil producers.
Higher OPEC+ output provides a counterweight
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, increased oil production by approximately 900,000 barrels per day in September, bringing average output to 39.07 million bpd, according to the group's monthly report released on Tuesday.
The increase was driven largely by Saudi Arabia, although shipping disruptions associated with the regional conflict continued to complicate the movement of oil to international markets.
Higher production could help replenish supplies and moderate upward pressure on prices. However, additional output does not necessarily translate into higher volumes reaching buyers if transport routes remain disrupted or vessels face security risks.
