Oil prices up 4% as supply fears mount despite record stocks release plan

By Shariq Khan

NEW YORK, March 11 (Reuters) - Oil prices gained much than 4% connected Wednesday arsenic caller attacks connected ships successful the Strait of Hormuz worsened proviso disruption fears, and analysts said the International Energy Agency's connection for a grounds merchandise ‌of lipid reserves is inadequate to easiness those fears.

Brent futures roseate $3.88, oregon 4.4%, to $91.68 a tube by 1:30 p.m. EDT (1730 GMT). U.S. ‌West Texas Intermediate traded $3.38 higher, oregon 4.1%, astatine $86.83 a barrel.

Three much vessels person been deed by projectiles successful the Strait of Hormuz, maritime information and hazard firms said connected Wednesday. ​That brought the fig of ships struck successful the portion to astatine slightest 14 since the Iran struggle began.

Shipping on the constrictive strait has travel to a adjacent standstill since the U.S. and Israel began strikes connected Iran connected February 28, preventing exports of astir a 5th of the world’s lipid proviso and sending planetary lipid prices surging to highs not seen since 2022.

President Donald Trump has repeatedly said the U.S. is prepared to escort tankers done the Strait ‌of Hormuz erstwhile necessary. However, sources told Reuters ⁠the U.S. Navy has refused requests from the shipping manufacture for subject escorts arsenic the hazard of attacks is excessively precocious for now.

The IEA, meanwhile, recommended the merchandise of 400 cardinal barrels of oil, the largest specified determination successful ⁠the agency's history, to effort to rein successful vigor prices which are present up much than 25% since the U.S.-Israeli warfare with Iran began. The clip framework for the merchandise volition beryllium decided successful owed course, the IEA said.

The projected measurement is much than treble the 182 cardinal barrels released successful 2022 pursuing Russia's ​invasion ​of Ukraine, but analysts said it was yet insufficient to resoluteness proviso losses from ​a prolonged warfare successful the Middle East.

The projected merchandise is ‌roughly adjacent to astir 4 days of planetary accumulation and 16 days of the measurement of crude that transits done the Gulf, Macquarie analysts estimated.

"If that doesn't dependable similar much, it isn't," the analysts said successful a note.

Oil prices besides shrugged disconnected a U.S. authorities study that showed crude lipid stockpiles successful the apical oil-producing state had grown much than expected past week. U.S. gasoline and distillate substance stocks, which see diesel and pitchy fuel, dropped much than expected, the study showed. [EIA/S]

SUPPLY CONCERNS REMAIN

Abu Dhabi authorities lipid elephantine ADNOC has unopen its Ruwais refinery successful effect to a occurrence astatine ‌a installation wrong the analyzable pursuing a drone strike, according to a source, marking ​the latest vigor infrastructure disruption owed to the U.S.-Israeli warfare connected Iran.