Oil Prices Rise Amid Iran-Israel Tensions Despite Record U.S. Output

04 Nov 2024 CW Team

Analyst Ole Hvalbye from SEB Research commented that any Iranian response might be restrained, similar to Israel's limited strike from the previous weekend, suggesting that such actions are likely meant to demonstrate strength rather than escalate into full-scale warfare. Tensions between Iran and Israel have intensified amid ongoing conflicts in Gaza, with previous Iranian air attacks on Israel largely repelled with minor damage.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced about 4 million barrels per day (bpd) in 2023 and is projected to export around 1.5 million bpd in 2024, an increase from 1.4 million bpd in 2023.

In addition to geopolitical factors, oil prices received support from expectations that OPEC+ might postpone its planned December increase in oil production due to concerns over weak demand and rising supply. A decision could be announced as early as next week.

While OPEC+ weighs its production strategy, U.S. oil companies, including Exxon Mobil and Chevron, reported record high global and domestic output, respectively. The U.S. Energy Information Administration (EIA) indicated that U.S. drillers extracted a record 13.5 million bpd of oil this week, reinforcing projections for continued growth in annual production.

In related economic news, U.S. job growth stagnated in October due to labor strikes and the impact of hurricanes, complicating the labor market's outlook ahead of the upcoming presidential election. Economists anticipate that the U.S. Federal Reserve will cut interest rates by 25 basis points next Thursday, a move that could stimulate economic growth and increase oil demand.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Oil prices increased due to reports that Iran was preparing a retaliatory strike on Israel from Iraq, although record output from the United States tempered these gains. Brent crude futures rose by 29 cents, or 0.4%, to settle at $73.10 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 23 cents, or 0.3%, closing at $69.49. Both benchmarks had reached session highs of over $2 a barrel earlier in the day. Analyst Ole Hvalbye from SEB Research commented that any Iranian response might be restrained, similar to Israel's limited strike from the previous weekend, suggesting that such actions are likely meant to demonstrate strength rather than escalate into full-scale warfare. Tensions between Iran and Israel have intensified amid ongoing conflicts in Gaza, with previous Iranian air attacks on Israel largely repelled with minor damage. Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced about 4 million barrels per day (bpd) in 2023 and is projected to export around 1.5 million bpd in 2024, an increase from 1.4 million bpd in 2023. In addition to geopolitical factors, oil prices received support from expectations that OPEC+ might postpone its planned December increase in oil production due to concerns over weak demand and rising supply. A decision could be announced as early as next week. While OPEC+ weighs its production strategy, U.S. oil companies, including Exxon Mobil and Chevron, reported record high global and domestic output, respectively. The U.S. Energy Information Administration (EIA) indicated that U.S. drillers extracted a record 13.5 million bpd of oil this week, reinforcing projections for continued growth in annual production. In related economic news, U.S. job growth stagnated in October due to labor strikes and the impact of hurricanes, complicating the labor market's outlook ahead of the upcoming presidential election. Economists anticipate that the U.S. Federal Reserve will cut interest rates by 25 basis points next Thursday, a move that could stimulate economic growth and increase oil demand.

Real Estate

08 Sep 2025

Max Estates Secures 7.25 Acre Land in Gurugram for Luxury Housing

Max Estates (Max Estates), a leading NCR real estate developer, has acquired development rights for a 7.25 acre land parcel in Sector 59, Gurugram, along the prime Golf Course Extension Road. The project has a development potential of approximately 1.3 million sq ft with an expected outlay of Rs 5.34 billion, offering a Gross Development Value (GDV) of more than Rs 30 billion. The transaction involves the purchase of 100 per cent shareholding in Base Buildwell (BBPL), the SPV holding license and development rights for the parcel, subject to regulatory approvals. With this acquisition, Max..

Resources

08 Sep 2025

10th Belt and Road Summit to Drive Collaboration in Hong Kong

The 10th edition of the Belt and Road Summit will be held on September 10-11 at the Hong Kong Convention and Exhibition Centre, marking a decade of progress under the Belt and Road Initiative (B&RI) and opening new avenues for collaboration among governments and businesses. Jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), the Summit is themed “Collaborate for Change • Shape a Shared Future”. It will feature over 90 high-level government officials and business leaders from across Belt a..

Infrastructure Transport

08 Sep 2025

Mumbai Introduces 12-Metre Electric Buses in BEST-PMI Partnership

In a milestone for sustainable urban transport, PMI Electro Mobility’s Mumbadevi Mobility, in partnership with the Brihanmumbai Electric Supply and Transport (BEST), launched the first batch of fully electric buses in Mumbai. At an official ceremony held at the BEST Office, Colaba Depot, four 12-metre e-buses were flagged off by Ashish Sharma, IAS, General Manager, BEST. This marks the first phase of a 250-bus fleet aimed at strengthening public transport and cutting the city’s carbon footprint. The buses will operate from Oshiwara Depot, serving high-demand routes for greater c..