Global Oil Surge: Brent Surpasses $110 Amid Middle East Supply Fears and Shrinking US Reserves

Oil prices posted sharp gains on global markets on October 21 as escalating geopolitical tensions and tightening supplies fueled market uncertainty. Brent crude futures for December delivery jumped $1.59, or 1.5%, reaching $110.38 per barrel. Simultaneously, West Texas Intermediate (WTI) rose by 1.4% to trade at $99.18 per barrel, Reuters reported.

The rally is primarily driven by fears of potential disruptions to Middle Eastern oil production and transit routes. Over the past two weeks, at least 18 attacks on commercial vessels have been reported. Industry analysts emphasize that maritime threats are no longer isolated to the Strait of Hormuz, extending well beyond the Persian Gulf.

Further upward momentum came from a notable drawdown in US crude inventories. According to data from the American Petroleum Institute, domestic crude stocks dropped by 4.9 million barrels during the week ending October 16.

This surge follows a volatile session the previous day, when Brent hit a five-month high before pulling back slightly. Market analysts note that crude prices remain highly volatile, responding sharply to ongoing developments in the Middle East.