Oil rises as Middle East supply concerns persist amid shipping attacks

Brent crude futures added $2.28, a gain of 2.28 per cent, to reach $102.28 a barrel early on Thursday, according to Business Recorder. West Texas Intermediate gained $1.66 to $89.94. Prices had closed lower on Wednesday after the International Energy Agency moved to hasten releases of stored barrels and favour diesel supplies.

Concern over Gulf supply deepened as tanker traffic through the Strait of Hormuz faced escalating assaults, with last week bringing the heaviest level of such incidents since the Iran war began. One tanker north of Qatar was hit by several projectiles, causing casualties, the UK Maritime Trade Operations agency said on Wednesday. Gulf producers have still lifted exports, though shipments now carry higher costs and greater danger for cargo and crew.

Hurricane Isaias added to the supply squeeze, with Shell and Chevron curtailing offshore work in the Gulf as the storm approached. The Marine Minerals Administration estimated that about 25.08% of current US Gulf oil output was shut in as of Wednesday. Separately, US crude stocks dropped 3.2 million barrels to 424.1 million in the week to October 2, more than the 1.7 million-barrel decline a Reuters poll had expected.