Oil prices rise 1% amid US storm concerns and Israel-Iran tensions
OIL & GAS

Oil prices rise 1% amid US storm concerns and Israel-Iran tensions

Oil prices experienced an increase of over 1 per cent, driven by a surge in fuel demand as a major storm approached Florida and amid on-going concerns regarding Middle Eastern supply risks.

Brent crude futures rose by $1.01, or 1.3 per cent, reaching $77.59 a barrel by 1108 GMT. Similarly, U.S. West Texas Intermediate (WTI) futures climbed by $1, or 1.4 per cent, to $74.24.

In the United States, the largest oil producer and consumer, Hurricane Milton made landfall in Florida, leading to the sale of gasoline at approximately a quarter of fuel stations, which helped support crude prices.

Prices spiked earlier in the month following Iran's launch of over 180 missiles targeting Israel on October 1, raising concerns about potential retaliation against Iranian oil facilities. Despite Israel's lack of response, crude benchmarks eased again, remaining relatively stable throughout the week.

Investors remained cautious, particularly since Israeli Defence Minister Yoav Gallant had assured that any strike against Iran would be "lethal, precise and surprising." US President Joe Biden had discussions with Israeli Prime Minister Benjamin Netanyahu regarding Israel's plans concerning Iran. However, analysts from ANZ noted a growing concern that Israel's allies might have limited influence over its strategy.

Even with the heightened tensions in the oil-producing Middle Eastern region, demand concerns continued to shape the fundamental outlook. Tamas Varga, an analyst at oil broker PVM, commented that without a significant demand excess or supply shortage, the risk would remain tilted toward the downside. He suggested that even if Israel's aggressive rhetoric translated into an attack on Iranian oil infrastructure, any price reaction could be brief yet intense.

Additionally, the U.S. Energy Information Administration (EIA) downgraded its demand forecast for 2025 due to weakening economic activity in China and North America. EIA data released on Wednesday indicated that crude inventories had built more than analysts had anticipated in a Reuters poll.

Oil prices experienced an increase of over 1 per cent, driven by a surge in fuel demand as a major storm approached Florida and amid on-going concerns regarding Middle Eastern supply risks. Brent crude futures rose by $1.01, or 1.3 per cent, reaching $77.59 a barrel by 1108 GMT. Similarly, U.S. West Texas Intermediate (WTI) futures climbed by $1, or 1.4 per cent, to $74.24. In the United States, the largest oil producer and consumer, Hurricane Milton made landfall in Florida, leading to the sale of gasoline at approximately a quarter of fuel stations, which helped support crude prices. Prices spiked earlier in the month following Iran's launch of over 180 missiles targeting Israel on October 1, raising concerns about potential retaliation against Iranian oil facilities. Despite Israel's lack of response, crude benchmarks eased again, remaining relatively stable throughout the week. Investors remained cautious, particularly since Israeli Defence Minister Yoav Gallant had assured that any strike against Iran would be lethal, precise and surprising. US President Joe Biden had discussions with Israeli Prime Minister Benjamin Netanyahu regarding Israel's plans concerning Iran. However, analysts from ANZ noted a growing concern that Israel's allies might have limited influence over its strategy. Even with the heightened tensions in the oil-producing Middle Eastern region, demand concerns continued to shape the fundamental outlook. Tamas Varga, an analyst at oil broker PVM, commented that without a significant demand excess or supply shortage, the risk would remain tilted toward the downside. He suggested that even if Israel's aggressive rhetoric translated into an attack on Iranian oil infrastructure, any price reaction could be brief yet intense. Additionally, the U.S. Energy Information Administration (EIA) downgraded its demand forecast for 2025 due to weakening economic activity in China and North America. EIA data released on Wednesday indicated that crude inventories had built more than analysts had anticipated in a Reuters poll.

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App