Oil prices rose in early Asian trade Thursday on concerns about potential supply disruptions in the Middle East, Israel considering striking oil-producing Iran, and surges in fuel demand as that a major storm hit Florida.
Brent crude rose 37 cents, or 0.5%, to $76.95 a barrel, while U.S. West Texas Intermediate (WTI) was up 35 cents, also 0.5%, to $73.59. per barrel at 0034 GMT.
The world’s largest oil producer and consumer was hit by a second major storm, Hurricane Milton, which made landfall on Florida’s west coast, sparking tornadoes and threatening seawater waves.
The storm has already driven up demand for gasoline in the state, with about a quarter of gas stations out of stock, helping to support crude prices.
Israeli Defense Minister Yoav Gallant vowed that an Israeli attack on Iran would be “lethal, precise and surprising.”
US President Joe Biden spoke with Israeli Prime Minister Benjamin Netanyahu about Israel’s plans regarding Iran in a 30-minute call Wednesday that the White House called “direct and very productive.”
Although threats to the oil-producing Middle East region are at the forefront, weak demand continues to underpin the fundamental outlook. On Tuesday, the US Energy Information Administration (EIA) lowered its demand forecast for 2025 due to weakening economic activity in China and North America.
EIA data showed Wednesday that crude inventories rose by 5.8 million barrels to 422.7 million barrels last week. It was a larger increase than expected by analysts polled by Reuters, but much smaller than that estimated Tuesday by the industry group American Petroleum Institute.
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