Oil prices climbed on Tuesday, October 20, 2026, with Brent crude trading above $110 per barrel as renewed attacks on Saudi infrastructure and reports of vessel attacks in the Gulf heightened concerns over global energy supplies.
Brent crude futures rose 52 cents, or 0.47 per cent, to $110.07 per barrel by 0628 GMT, after reaching $110.70 in the previous session, its highest level since May 20.
The United States West Texas Intermediate (WTI) crude contract for November delivery, which expires on Tuesday, gained 0.36 per cent to $104.03 per barrel. The more actively traded December contract rose 26 cents, or 0.26 per cent, to $98.80.
The price increases reflected a geopolitical risk premium as traders assessed the potential impact of the escalating tensions in the Middle East on oil production and transportation.
Analysts at ING said oil prices remained well supported, suggesting that the market was factoring in significant risks arising from the volatile security situation.
“However, if flows continue uninhibited despite the geopolitical environment, the risk premium would likely erode slowly. Clearly, there are no signs of this yet,” the analysts said.
Ship-tracking firm Kpler said in a note on Monday that at least 18 vessels had been attacked over a two-week period, reinforcing concerns over maritime security and helping to sustain the risk premium in oil prices.
The renewed attacks have intensified fears about regional stability and the potential disruption of energy supplies from the Middle East, keeping crude prices above $100 per barrel.
Meanwhile, crude oil inventories in the United States were expected to have declined in the previous week, alongside stocks of refined petroleum products, according to a preliminary Reuters poll released on Monday.
Developments in US policy towards Russia also remained in focus among oil market participants.
On Friday, US President Donald Trump issued an executive order waiving key Russia-related sanctions and tariffs, including certain duties on goods and penalties linked to purchases of Russian energy.
However, Trump said on Saturday that he had yet to make a final decision on the matter. US Secretary of State Marco Rubio also said officials needed more time to assess the situation.
Separately, the International Energy Agency reported last week that Russia’s crude oil production rose by 65,000 barrels per day in September to 8.43 million barrels per day.
Despite the increase, Russian output remained about 870,000 barrels per day below the level recorded a year earlier, underscoring continuing changes in global oil supply.
