Oil rises to $110 as Middle East supply risks persist

Oil prices rose on October 21 as concerns about Middle East shipping and supply disruptions coincided with a reported decline in U.S. crude inventories. At 0630 GMT, Brent futures were up $1.61, or 1.5%, at $110.40 a barrel, while U.S. West Texas Intermediate futures gained $1.45, or 1.5%, to $99.27, according to Reuters market data. The gains followed a decline in the previous session, when traders weighed diplomatic efforts alongside security risks to regional energy supplies. Prices can respond to the prospect of disruption even when oil continues to move through alternative routes, and reports did not establish that the latest security threats had halted exports. Ship-tracking firm Kpler reported at least 18 vessel attacks over the preceding two weeks. LSEG analysts said threats to tankers had extended beyond the Strait of Hormuz into the Gulf of Oman, putting regional crude loadings and ship-to-ship transfers at risk. The assessments point to concerns over the safety and cost of shipping, but do not by themselves establish the scale of any resulting supply loss. A market estimate based on American Petroleum Institute data put U.S. crude stocks down 4.9 million barrels in...