As a powerful hurricane headed into Florida, demand for fuel increased, and worries about possible supply interruptions in the Middle East due to increased tensions between Israel and Iran—a key oil producer—fueled an increase in oil prices on Thursday.
At 04:23 GMT, US West Texas Intermediate (WTI) prices were up 63 cents, or 0.9%, at $73.87 a barrel, while Brent oil futures increased by 63 cents, or 0.8%, to $77.21 a barrel.
Hurricane Milton, the second significant hurricane to impact the earth, made landfall on Florida’s west coast, causing tornadoes and threatening waves of saltwater. The United States is the world’s greatest producer and user of oil.
About 25% of petrol outlets in the state have already sold out of gasoline due to the storm’s increased demand, which has supported crude prices.
Investor caution on the mounting tensions between Israel and Iran, as promised by Israeli Defense Minister Yoav Gallant, further supported prices. Gallant said that an Israeli strike over Iran would be “lethal, precise, and surprising.”
In a 30-minute chat dubbed “direct and very effective,” US President Joe Biden discussed Israel’s plans toward Iran with Israeli Prime Minister Benjamin Netanyahu on Wednesday.
Analysts at ANZ stated in a note on Thursday that while Biden “continues to prevent Israel from attacking oil facilities, there is growing concern that Israel’s partners have little impact on its approach.”
Despite the fact that the Middle East, which is a major producer of oil, is under threat, demand worries remain the foundation of the whole picture.
Due to the deteriorating state of the economies in China and North America, the US Energy Information Administration (EIA) reduced its demand estimate for 2025 on Tuesday.
According to EIA statistics released on Wednesday, last week’s oil stocks increased by 5.8 million barrels to 422.7 million barrels.
That was somewhat less than the industry organization American Petroleum Institute’s Tuesday forecast, but it was still a larger construction than Reuters’ poll of experts had predicted. However, JPMorgan analysts claim that this month’s growth in oil demand has supported prices.
