Oil prices rose in early Asian trading, today, Thursday, against the backdrop of fears of possible disruption of supplies from the Middle East, amid reports of Israel’s intention to strike Iran, in addition to increased demand for fuel in light of a major storm in Florida.
“Brent crude futures rose 37 cents, or 0.5 percent, to $76.95 per barrel, while US West Texas Intermediate crude futures also rose 35 cents, or 0.5 percent, to $73.59 per barrel.”
The largest oil producing and consuming country in the world is exposed to another major storm, Hurricane Milton, which reached the west coast of Florida, causing strong winds and the possibility of rising sea levels.
The storm had already raised demand for gasoline in the state, as supplies ran out at about a quarter of gas stations, which helped support crude prices.
Prices also received support from investors’ continued warning of a possible increase in tension between Israel and Iran, as Israeli Defense Minister Yoav Galant threatened Iran with a strike that would be “deadly, precise, and sudden.”
Weak demand continues to overshadow fundamental expectations. On Tuesday, the US Energy Information Administration lowered its demand forecast for 2025 due to weak economic activity in China and North America.
Data from the administration showed on Wednesday that crude inventories jumped by 5.8 million barrels to 422.7 million barrels last week. This increase exceeded the expectations of analysts polled by Reuters, but was much lower than the American Petroleum Institute estimates issued on Tuesday.
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