As of 20:33 ET (00:33 GMT), Brent Oil Futures expiring in September were up 1.7% at $95.62 per barrel, while West Texas Intermediate (WTI) crude futures gained 1.5% to $88.18 per barrel. The advance extended a five-session rally as traders reacted to heightened geopolitical risks affecting crude transport.<\/p>\n
Houthi militants said on Thursday they targeted the Saudi tankers ENCELA and LAYLIA, accusing them of violating a recently announced maritime blockade. Saudi authorities have not confirmed any damage. The attacks represent the latest escalation in a conflict that has increasingly threatened energy infrastructure and global shipping in the region.<\/p>\n
Earlier this week, the group warned it would seek to block Saudi-linked shipping through the Bab el-Mandeb Strait, a key chokepoint connecting the Red Sea with the Gulf of Aden and regarded as one of the world\u2019s busiest energy transit routes. Several Saudi crude tankers bound for India and China altered course earlier in the week following these warnings.<\/p>\n
Any sustained disruption through Bab el-Mandeb could force tankers to reroute around southern Africa, extending voyage times and raising freight costs. Market participants are also monitoring ongoing fighting between the U.S. and Iran, which adds uncertainty around traffic through the Strait of Hormuz, another vital corridor for global oil exports.<\/p>\n
Together, the Strait of Hormuz and Bab el-Mandeb handle a significant share of seaborne crude shipments and are closely watched by energy markets. Traders are increasingly focused on transportation risks, rising insurance costs, and the potential for further attacks on tankers or energy facilities.<\/p>\n
The geopolitical backdrop has, for now, outweighed bearish signals from U.S. inventory data. The U.S. Energy Information Administration reported that commercial crude inventories rose by 2.0 million barrels to 411.7 million barrels in the week ended July 17, against market expectations for a draw. Gasoline inventories increased by 0.8 million barrels and distillate stockpiles rose by 1.4 million barrels, while total commercial petroleum inventories climbed 11.6 million barrels.<\/p>\n
These inventory builds typically indicate weaker immediate demand or higher supply, but current price action reflects the market\u2019s emphasis on potential supply disruptions from shipping route instability rather than domestic stock changes alone.<\/p>\n
Why did oil prices rise despite a build in U.S. crude inventories?<\/strong> Which tankers were reportedly targeted in the Red Sea?<\/strong> Why are Bab el-Mandeb and the Strait of Hormuz important for oil markets?<\/strong> What changes were reported in U.S. petroleum inventories?<\/strong>
Oil prices increased as traders focused on escalating geopolitical risks and potential supply disruptions in key Middle East shipping routes, which outweighed the bearish signal from higher U.S. crude stocks.<\/p>\n
Houthi militants said they targeted the Saudi oil tankers ENCELA and LAYLIA in the Red Sea, alleging violations of a newly announced maritime blockade.<\/p>\n
Bab el-Mandeb and the Strait of Hormuz are critical chokepoints handling a significant share of global seaborne crude shipments, so any disruption can affect transport routes, costs, and overall supply availability.<\/p>\n
For the week ended July 17, U.S. commercial crude inventories rose by 2.0 million barrels to 411.7 million barrels, gasoline inventories increased by 0.8 million barrels, distillate stockpiles were up 1.4 million barrels, and total commercial petroleum inventories grew by 11.6 million barrels.<\/p>\n