Oil Steady With Hormuz Flows Recovering, Iran Vessel Attacks Rising; WTI Below $90

Oil traded in a narrow range as crude shipments through the Strait of Hormuz recovered while attacks on vessels by Iran increased.

According to Bloomberg on October 6, West Texas Intermediate traded below $90 a barrel after sharp swings in the previous session. Brent closed near $101 a barrel a day earlier.

Rising crude flows through the Strait of Hormuz have eased some concerns over supply disruptions. At the same time, at least nine vessel attacks have been recorded in the strait so far this month, according to UK Maritime Trade Operations. That amounts to about half of all attacks reported last month in the Strait of Hormuz and the Persian Gulf.

Oil prices have surged this year as the war between the U.S. and Iran disrupted Middle East energy supply chains. Top oil executives, including Shell Chief Executive Officer Wael Sawan, have warned that the industry's ability to absorb a supply shock is shrinking as global crude inventories fall and petroleum products such as diesel remain expensive.

The U.S. government is also weighing steps to address high energy prices. President Donald Trump said he is considering a temporary suspension of the federal gasoline tax. Earlier, the administration eased regulations to allow truck drivers to use diesel typically reserved for agricultural equipment such as tractors.

Falling U.S. crude inventories also supported prices. The American Petroleum Institute estimated that U.S. crude stockpiles fell by 2.1 million barrels last week, while gasoline inventories also declined.

Markets are watching official U.S. government oil inventory data due later that day, along with crude flows through the Strait of Hormuz and trends in vessel attacks.