Crude oil futures settle at $97.97. Highest level since mid- September.

The price of crude oil futures settled up to dollars and $0.88 or 3.03% at $97.97. The high price for the day extended to $98.32. The low price was at $93.58.Fundamentally, U.S. crude inventories fell 8.6 million barrels, compared with expectations for a draw of just 288,000 barrels. That helped to explain WTI’s stronger performance. In the Middle East:Iran is stepping up pressure on shipping. Reporting published yesterday indicates Iran has changed tactics and increased attacks around the Strait of Hormuz, with operations extending farther into surrounding waters. Iranian officials described an effort to keep oil prices elevated ahead of the U.S. elections. That threatens the recovery in regional exports and keeps shipping and insurance costs high. Saudi Arabia and the Houthis remain in an escalating conflict. Today, Saudi authorities reported intercepting a missile over Medina and a drone over the oil-producing Eastern province. Responsibility for the Medina incident remains disputed. Houthi missiles and drones also struck near the government palace in Aden, killing at least two people. Fighting around the Bab el-Mandeb adds another shipping concern. The Houthi rebels also refused to meet with Saudi Arabia.Transport costs are amplifying the energy shock. Higher freight and insurance expenses make delivered oil more expensive, even when the barrels themselves remain available. Reuters reports sharply higher tanker costs as conflict disrupts routes and vessel availability. The Middle East is keeping a risk premium in oil, while the inventory surprise provided today’s additional push for WTI. The next question is whether attacks translate into sustained losses of actual exports. That would give the rally a stronger fundamental foundation; safer passage and recovering shipments would help ease the pressure. Time will tell but the price action will also yield clues.Looking at the hourly chart, the high price today moved up to test the high of a swing area going back to early June. That upside target area came between $97.00 and $98.48With the high prices 98,000 $0.32, the sellers have been successful at putting a lid on the pair against the resistance target. However if the price were to break above that level, we would next look to target the $100 level followed by the $105 level as major targets.On the downside, breaking back below the $97 level is needed to give the sellers some added comfort. Absent that and the buyers are still in firm control. This article was written by Greg Michalowski at investinglive.com.