EL7.AI
CommoditiesMedium•23 October 2026•
3 min read

Brent jumps 4% to $113.17 on supply concerns and U.S. refinery funding plan

Key Facts

1Brent settled at $113.17 a barrel on October 22, up $4.35 or 4%.
2Planned Defense Production Act funding for U.S. refineries totals up to $150 million.
3West Texas Intermediate rose $2.32 or 2.4% to $99.47 a barrel on October 22.
4U.S. refineries operated at an average of more than 95% of capacity from May through September, the highest for those months since 1998.

Brent crude rose 4%, or $4.35, to settle at $113.17 a barrel on October 22, while West Texas Intermediate gained 2.4%, or $2.32, to $99.47. Reuters attributed oil’s move to concerns sparked by Houthi attacks in Saudi Arabia about further disruption to energy supplies from a major exporting region. The advance came after Brent touched a five-month high, according to The Associated Press. Crude was trading below $97 a barrel at the start of October, the news agency said. The move underscores prices’ sensitivity to risks to energy flows and shipping in the region.

The U.S. Department of Energy said President Donald Trump announced on October 22 a plan to provide up to $150 million in funding under Title III of the Defense Production Act. The funding is intended to support domestic oil production, storage and refinery logistics. The department expected the plan to increase U.S. refinery output by millions of gallons a day of gasoline, diesel, jet fuel and other petroleum products. The department has not yet identified recipients, saying the selection process is ongoing and an announcement will be made “in the near future.” The announcement comes as the United States seeks to expand domestic refining capacity, while markets track oil and fuel prices amid supply concerns.

Data from the Energy Information Administration show that U.S. refineries operated at an average of more than 95% of capacity from May through September, the highest level for those months since 1998. These indicators form part of the picture of U.S. supplies, alongside the announced refinery funding plan. In shipping, The Associated Press reported that October saw 28 attacks on ships, the highest number of reported attacks on commercial shipping since March. Despite the risks, tankers continued to transit the Strait of Hormuz, while a U.S.-protected maritime route helped restore shipments to prewar levels at high cost, the news agency said.

Energy flows through the Gulf and Strait of Hormuz remain under scrutiny as risks to navigation persist. The Associated Press said “active Gulf operators show little sign of retreat” despite the attacks on ships recorded in October. On the supply side, seven OPEC+ countries agreed to keep production steady in November. The group is scheduled to meet again on November 1 to review oil market conditions. Before that, the Federal Open Market Committee will meet on October 27 and 28, with the Federal Reserve to hold its press conference on October 28.