Oil prices rose during American trading on Thursday, continuing their upward trend. US crude is nearing its highest point in two months, while Brent is approaching a 1.2-month peak.
Market participants are closely watching developments in the Middle East and assessing the damage caused by Hurricane Milton in Florida, which overshadowed data showing a significant increase in US crude stockpiles last week.
Price Movements
US crude surged by 2.2%, reaching $74.93 per barrel, after hitting a session low of $73.33. Brent also advanced by 2%, climbing to $78.23 per barrel, with a session low of $73.33.
On Wednesday, US crude had slipped 0.75%, marking its second consecutive decline due to profit-taking after reaching two-month highs of $78.44. Brent fell by 0.9% on the same day, also due to profit-taking from its 1.2-month high of $81.12.
Middle East Tensions
Global energy markets remain tense as traders brace for Israel’s potential retaliation against Iran following a recent missile attack. Tehran has warned that it could launch thousands of rockets if necessary, raising fears of a broader conflict in the region.
Israel’s Defense Minister stated that any strike on Iran would be a precise and unexpected blow.
Hurricane Milton
Traders are also tracking Hurricane Milton's path in Florida, which is the strongest storm to hit the state in 100 years. There are concerns it could affect oil facilities and disrupt infrastructure in the region.
US Crude Stockpiles
According to the Energy Information Administration (EIA), US crude inventories increased by 5.8 million barrels last week, bringing the total to 422.7 million barrels. Analysts had forecast a more modest increase of 2 million barrels.
Meanwhile, gasoline stocks dropped by 6.3 million barrels to 214.9 million barrels, and distillate inventories decreased by 3.1 million barrels to 118.5 million barrels.
US Oil Production
The EIA also reported that US crude output rose by 100,000 barrels per day (bpd), reaching a record-high level of 13.4 million bpd.