Oil Prices Supported by US Inventory Draw and Red Sea Geopolitical Risks

Key Facts

1API data showed a significant draw in crude oil inventories of 4.93 million barrels.

2WTI crude is eyeing the $101.38 level while Brent holds steady above $108.21.

3Ongoing Houthi threats in the Red Sea are keeping geopolitical risk premiums elevated.

API data showed a significant draw in US crude oil inventories of 4.93 million barrels for the week ending October 16, 2026. FX Empire reported that this decline comes alongside a tightening diesel fuel market that has drawn the attention of the US government in Washington.

Ongoing Houthi threats in the Red Sea are keeping geopolitical risk premiums elevated, providing a floor for energy prices. WTI crude is currently eyeing the $101.38 level while Brent holds steady above $108.21, even as natural gas prices face downward pressure.