Brent crude jumped 4.3% to $104.48 a barrel early on Thursday, back above $100, as tanker attacks in the Strait of Hormuz thinned out shipping and a hurricane bore down on the US Gulf Coast. West Texas Intermediate, the US benchmark, gained about 4.3% too and reached $92.05 a barrel, CNN reported.
Fewer tankers, record attacks
Kpler data show only seven tankers made the crossing through Hormuz on Tuesday. That was under half the average of the previous seven days and the thinnest day since July 23.
Kpler also counted 10 attacks on tankers in the strait between September 28 and October 4. No week had seen more. The old high was six.
Another strike came on Wednesday. The UK Maritime Trade Operations agency said a tanker reported being hit by multiple projectiles, and that there were casualties. CNN noted that the attacks are happening even as more crude has been leaving the Gulf, so the worry is less about output than about the safety of ships, crews and cargoes.
A storm aimed at Gulf Coast refiners
Hurricane Isaias is heading for the Gulf Coast, which hosts a large share of America’s oil production and refining. Shell and Chevron said they would cut production in the region and pull out nonessential workers. CNN reported that fear of lost output added to the push higher in prices.
So the market faces two separate threats at once: tankers that may not get through Hormuz, and wells and refineries that may go dark in Texas and Louisiana waters.
Europe feels it first
European natural gas prices rose on Thursday and came close to their mid-September high before slipping back later in the day, according to CNN. ICE Gasoil Futures, a key benchmark for European diesel, closed 6% higher on Wednesday.
Europe imports much of its energy, and the climb in oil, gas and diesel brought fresh inflation worries. It also fed a renewed selloff in European bonds.
The IEA holds its line
The International Energy Agency said its member governments would not add to the emergency release they agreed in March. That plan called for 400 million barrels. About 325 million have been released so far, the agency said.
Roughly 100 million more are still to come, including diesel that G7 countries agreed last week to release. The IEA said it would “accelerate” those deliveries.
Member governments publicly hold emergency stocks equal to about 1.1 billion barrels, and more than 200 million barrels of that is diesel. The agency left the door open to further releases if the market needs them.
Pump prices lag
American drivers have not yet seen the full jump. The average US price for diesel was $6.28 a gallon on Thursday, a little below the day before. Regular gasoline held at $4.36 a gallon, AAA reported.
