WEB DESK: Global oil prices climbed on Thursday, driven by increased fuel demand as a powerful storm slammed into Florida and fears of supply disruptions amid escalating tensions in the Middle East.
Brent crude futures edged up by 24 cents (0.3%) to $76.82 per barrel, while US West Texas Intermediate (WTI) futures rose 28 cents (0.4 per cent) to $73.52 per barrel by 0655 GMT.
Florida faced its second major storm in recent weeks, Hurricane Milton, which struck the state’s west coast, triggering tornadoes and causing dangerous storm surges. The severe weather has led to a spike in gasoline demand, with about 25 per cent of fuel stations in Florida running out of supplies, further pushing oil prices higher.
Tensions in the Middle East also added to market concerns. Israel’s Defence Minister, Yoav Gallant, issued a stern warning to Iran, saying any Israeli strike would be “lethal, precise, and surprising.”
US President Joe Biden held a 30-minute call with Israeli Prime Minister Benjamin Netanyahu on Wednesday to discuss Israel’s stance on Iran. Though Biden advised against targeting oil facilities, analysts noted that international influence over Israel’s actions might be limited.
Despite these potential threats to supply, there are still concerns about future demand. The US Energy Information Administration (EIA) recently downgraded its forecast for 2025 due to weaker economic growth in China and North America.
Last week, US crude inventories rose by 5.8 million barrels, surpassing analyst expectations but still lower than earlier industry estimates.
However, there are signs of stronger demand this month. JPMorgan analysts highlighted a surge in US gasoline consumption, which increased by 800,000 barrels per day week-over-week.
In Asia, air travel has also picked up following disruptions caused by typhoons, with China’s daily flight activity reaching its highest level in eight weeks.
As the weather continues to drive demand, analysts expect further fluctuations in oil prices in the weeks ahead.
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