Oil rates increase amid concerns of Israeli retaliation against Iran, Hurricane Milton
Date
10/10/2024 3:54:46 AM
(MENAFN) Oil prices rose in early Asian trading on Thursday amid concerns over potential disruptions to Middle East supplies, fueled by reports that Israel is planning to strike Iran. Increased demand for fuel due to Hurricane Milton sweeping across Florida also contributed to the rise. brent crude futures increased by 37 cents, or 0.5 percent, reaching USD76.95 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 35 cents, or 0.5 percent, to USD73.59 a barrel.
The United States, the largest global oil producer and consumer, is facing the impact of Hurricane Milton. The storm has brought strong winds and the potential for rising sea levels, boosting local gasoline demand in Florida. Approximately a quarter of gas stations in the state have already run out of fuel, which has supported the rise in crude prices.
Geopolitical tensions also added to price pressures, with Israeli Defense Minister Yoav Galant issuing a warning to Iran, threatening a "deadly, precise, and surprising" strike. This came after U.S. President Joe Biden had a 30-minute phone conversation with Israeli Prime Minister Benjamin Netanyahu, discussing Israel's plans regarding Iran. The White House described the call as "very direct and constructive."
Despite these immediate concerns, weaker demand continues to weigh on the broader outlook. The U.S. Energy Information Administration (EIA) on Tuesday revised its 2025 demand forecast downward, citing sluggish economic activity in China and North America. On Wednesday, data from the EIA showed U.S. crude inventories rose by 5.8 million barrels to 422.7 million barrels last week, surpassing analyst expectations but falling short of estimates from the American Petroleum Institute.
MENAFN10102024000045015839ID1108765141
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.