WEB DESK: Oil prices dipped slightly on Friday, cooling off from Thursday’s rally, but still on track for a second consecutive weekly gain. Investors are weighing the effects of hurricane damage on US fuel demand, alongside concerns about potential supply disruptions if Israel targets Iranian oil sites.
Brent crude futures slid by 39 cents, or 0.5 per cent, settling at $79.01 per barrel by 0152 GMT, while US West Texas Intermediate (WTI) futures dropped 32 cents, or 0.4 per cent, to $75.53 a barrel. Both benchmarks are heading for a weekly rise of around 1 per cent to 2 per cent.
Hurricane Milton wreaked havoc in Florida on Thursday, claiming at least 10 lives and leaving millions without electricity. The aftermath of the storm could reduce fuel demand in the US, the world’s top oil producer and consumer.
“Investors are now focusing on how hurricane damage might affect the US economy and fuel consumption,” said Hiroyuki Kikukawa, president of NS Trading at Nissan Securities. He also noted that oil prices are expected to hover around their 200-day averages. Brent’s average sits at $81.68 a barrel, and WTI’s at $77.36.
Oil markets have been jittery since Iran fired over 180 missiles at Israel on 1st October, prompting fears of Israeli retaliation against Iran’s oil infrastructure. Despite this, Israel has held back so far, causing oil prices to stabilise somewhat.
However, Israeli Defence Minister Yoav Gallant warned that any response to Iran would be “lethal, precise, and surprising.”
Meanwhile, Gulf states are urging the US to restrain Israel from attacking Iranian oil sites, fearing potential retaliation on their own oil facilities by Tehran-backed groups like Hezbollah or the Houthis. This diplomatic push highlights concerns over the broader regional impact if the conflict escalates.
On the supply side, Libya’s National Oil Corporation announced on Thursday that its production has almost returned to pre-crisis levels, reaching 1.22 million barrels per day, following resolution of issues related to the country’s central bank crisis.
With geopolitical tensions simmering and hurricane damage still being assessed, the oil market remains in a state of cautious anticipation.
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