Oil prices rose on Thursday as the United States faces an intense storm and tensions in the Middle East continue to simmer. Brent crude futures rose by 0.8%, or 58 cents, to $77.16 per barrel, while the US benchmark, West Texas Intermediate, gained 0.8%, or 61 cents, arriving at $73.85.
Hurricane Milton, which has hit Florida, was a major driver of oil prices, with a quarter of fuel stations in the US state sold out of gasoline. The Iranian ballistic missile attack on Israel also sparked oil supply concerns, with onlookers anticipating an Israeli response.
Still, oil prices may be stabilized due to a decline in demand. The US Energy Information Administration (EIA) downgraded its demand forecast for 2025 due to weakening economic activity in China and North America. “Without a genuine demand excess or supply shortage, the risk will remain skewed to the downside,” Tamas Varga at oil broker PVM warned.