Crude oil prices jumped 4% in Thursday trading, supported by a rise in demand for fuel before Hurricane Milton hit Florida, fears of possible disruptions to supplies in the Middle East, and indications that demand for energy may grow in the United States and China.
By 17:24 GMT, Brent crude futures rose $2.87, or 3.8%, to $79.45 per barrel, while US West Texas Intermediate crude futures increased $2.75, or 3.8%, to $75.99.
In the United States, the world’s largest oil producer and consumer, Hurricane Milton swept through the state of Florida, where gasoline stocks ran out at nearly a quarter of gas stations and power was cut off to more than 3.4 million homes and businesses.
Prices rose this month after Iran fired more than 180 missiles at Israel on the first of this month, raising possibilities of a response by targeting Iranian oil facilities. With no response from Israel yet, crude prices fell again and remained relatively stable throughout the week.
But investors are still cautious after Israeli Defense Minister Yoav Galant threatened Iran with a “deadly, targeted, and sudden” strike.
US President Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu about Israel’s plans regarding Iran in a phone call yesterday, Wednesday.
The United Nations said that Israeli forces opened fire on two sites of the United Nations Interim Peacekeeping Force in Lebanon (UNIFIL) on Thursday and on another site on Wednesday, and Israel also continued its attack on Lebanese Hezbollah.
Three Gulf sources told Reuters that Gulf countries are pressuring Washington to prevent Israel from attacking Iranian oil fields, out of concern that its oil facilities might be exposed to fire from groups allied with Tehran if the conflict escalates.
In a move that may boost oil demand in the world’s second-largest oil consumer, China published a draft law aimed at promoting private sector development, which is the latest step the country has taken to boost investor confidence amid an economic slowdown.
In the United States, markets have become more confident that the Federal Reserve (the US central bank) will lower interest rates next November, after data showed an increase in weekly unemployment claims and an annual rise in inflation, the lowest since February 2021.
Low interest rates reduce borrowing costs for consumers and businesses, which may boost economic growth and demand for oil.
