Oil prices rose during trading on Wednesday, October 9, after sharp losses yesterday, Tuesday, amid monitoring the latest developments in geopolitical tensions in the Middle East, and expectations related to demand for crude.
In terms of trading, Brent crude futures rose by about 0.9% to $77.89 per barrel. US crude futures also rose by 0.9% to $74.24 per barrel.
Prices had fallen more than 4 percent in the previous session on the possibility of a ceasefire between Lebanon's Hezbollah and Israel, but markets remained wary of a possible Israeli attack on Iranian oil infrastructure.
We expect additional volatility as the market balances bearish fundamentals with supply risks due to escalating tensions in the Middle East, Macquarie analysts said in a note.
The US Energy Information Administration on Tuesday cut its forecast for global oil demand growth in 2024 by 20,000 barrels per day to 103.1 million barrels per day due to weak industrial production and manufacturing growth in the United States and China.
As for the latest developments regarding Hurricane Milton, one of the strongest Atlantic hurricanes ever, is expected to hit the Florida coast on the Gulf of Mexico on Wednesday, which could disrupt gasoline supplies to America's third-largest consumer state.
“With some uncertainty over the impact of Hurricane Milton on oil infrastructure and traders still guessing what Israel’s response to the Iranian missile attack will be and when it will come, I think we’ve reached a new higher trading range at the moment between $72.50 and $77.50,” said Tony Sycamore, market analyst at IG.
