Oct 10 2024: Oil prices increased on Thursday, supported by rising fuel demand as Hurricane Milton hit Florida and growing concerns about potential supply disruptions in the Middle East due to escalating tensions between Israel and Iran.
Brent crude futures gained 24 cents, or 0.3%, to reach $76.82 per barrel, while U.S. West Texas Intermediate (WTI) futures rose 28 cents, or 0.4%, to $73.52 per barrel.
Fuel demand surged in Florida due to the storm, with nearly a quarter of gas stations running out of supplies, pushing crude prices higher. Additionally, tensions between Israel and Iran further bolstered prices, as Israeli Defense Minister Yoav Gallant warned of a possible “lethal, precise, and surprising” strike against Iran.
Despite these geopolitical concerns, the U.S. Energy Information Administration (EIA) recently downgraded its demand forecast for 2025, citing weakening economic activity in China and North America. However, current demand has increased, especially in the U.S. and Asia, where gasoline demand and flight activity have rebounded.
With weather-driven demand expected to rise in the coming weeks, the oil market remains under close watch.
