Brent crude hits $105 as tanker attacks continue
- Brent crude traded at $105.48 per barrel and West Texas Intermediate at $97.40 on October 16, 2026, with both benchmarks heading toward weekly gains.
- U.S. crude inventories fell by 8.56 million barrels in the week ending October 9, while Strait of Hormuz oil flows declined to 11.62 million barrels per day.
- ING analysts said Middle East security risks were keeping a premium in oil prices, while emergency reserve releases and proposed tanker sanctions relief could affect supply.
Brent crude traded at $105.48 per barrel and West Texas Intermediate at $97.40 on October 16, with both benchmarks heading for weekly gains amid tanker attacks near the Strait of Hormuz.
The gains followed an 8.56 million-barrel decline in U.S. crude inventories during the week ending October 9, while both oil benchmarks remained below their earlier weekly highs.
"Uncertainty in the Middle East and concerns over the sustainability of oil flows through the Strait of Hormuz have the market pricing in a significant risk premium," said ING commodity strategists Warren Patterson and Ewa Manthey.
Shipping data from Kpler showed average oil flows through the Strait of Hormuz fell to 11.62 million barrels per day in the week to October 13, compared with a baseline of 17.15 million barrels per day.
ING analysts said a U.S.-Iran agreement could help remove the oil market's geopolitical risk premium, while Brent and WTI were trading at $105.48 and $97.40 per barrel, respectively, at the reported observation time.
The International Energy Agency's members agreed to release the remaining 100 million barrels from an emergency reserve programme announced in March 2026, including approximately 20 million barrels of diesel.
The United States was also reportedly considering easing sanctions on some shadow fleet tankers to address shipping costs, although ING warned that existing tanker commitments and European sanctions could limit the proposal's effectiveness.
