Brent crude above $100, up 66.9% since the start of the year

On Wednesday a barrel of Brent crude, traded in London, rose 0.98% to $101.57. That is 66.9% more than at the start of the year. US WTI crude costs $90.20, up 57.1% since the start of the year.

Hormuz under fire

The rise is driven by the situation in the Strait of Hormuz, the route for oil from the Persian Gulf. According to the Polish Press Agency and Rzeczpospolita, Iran is attacking ships there more and more often. The UK maritime agency UKMTO has counted at least 9 attacks on tankers since the start of October.

The series intensified at the end of September. Between 28 September and 2 October alone, at least 6 vessels were hit. Fires broke out on several of them and were put out.

Reserves on standby

The International Energy Agency (IEA) is discussing an emergency release of up to 100 million barrels from strategic stocks. Such a move is meant to calm the market if supplies from the Gulf are disrupted more seriously.

What it means for Poland

Expensive oil feeds into wholesale fuel prices, which in turn set the maximum prices at Polish petrol stations. Fuel accounted for about half of September's 4.0% inflation, so high oil prices make it harder to bring inflation down. That is one reason the market expects interest rates to rise over the next year. Statistics Poland will publish full September inflation data in mid-October.