Brent Crude Stays Above $110 Amid West Asia Supply Concerns and Inventory Data

Brent crude oil futures traded above $110 a barrel on Wednesday morning as global markets assessed ongoing supply disruptions driven by continued tensions in West Asia.

At 10:03 am on Wednesday, December Brent oil futures stood at $110.31, marking an increase of 1.40 per cent. Meanwhile, December crude oil futures on West Texas Intermediate (WTI) traded at $99.08, up by 1.29 per cent.

Domestic commodity markets reflected similar upward trends during the initial hours of trading on Wednesday. November crude oil futures on the Multi Commodity Exchange (MCX) traded at ₹9,422, compared to the previous close of ₹9,311, registering a 1.19 per cent increase. December futures on the MCX traded at ₹9,249 against the previous close of ₹9,148, up by 1.10 per cent.

Market sentiment continued to be influenced by regional reports of supply risks. Citing Iranian media, a Reuters report noted that a super-tanker caught fire after striking a sea mine south of the Strait of Hormuz while allegedly violating Iranian regulations. The report added that at least 18 vessel attacks had been recorded over a two-week period. Additionally, attacks on Saudi sites persisted, with the Houthis claiming responsibility for incidents affecting a Saudi Aramco facility in Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha.

In the United States, industry data released by the American Petroleum Institute (API) indicated a decline in crude oil inventories by 4.93 million barrels for the week ending October 16. Official figures on US crude oil inventories are scheduled for release later on Wednesday to provide a definitive view of inventory levels.

Other commodities saw mixed trading during the early hours on Wednesday. October aluminium futures on the MCX traded at ₹324.50 compared to the previous close of ₹326.40, marking a 0.58 per cent decline. On the National Commodities and Derivatives Exchange (NCDEX), December turmeric farmer polished contracts traded at ₹25,150 against the previous close of ₹24,904, up by 0.99 per cent. Conversely, December cottonseed oilcake futures on the NCDEX traded at ₹3,627, down 0.63 per cent from the previous close of ₹3,650.

"Fluctuations in global crude oil prices directly impact supply chain logistics, manufacturing overheads, and operational costs across multiple business sectors. When energy commodities remain elevated above key thresholds like $110 a barrel due to geopolitical tensions, businesses—particularly in manufacturing, transport, and logistics—face margin pressures. Entrepreneurs and corporate leaders must closely monitor commodity trends and integrate dynamic risk management frameworks to safeguard working capital against sudden macro-level cost inflations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes