Israel-Iran conflict and storm in US caused rise in oil prices - Reuters

Brent crude futures rose by 37 cents (0.5%) to $76.95 per barrel. Meanwhile, West Texas Intermediate (WTI) futures increased by 35 cents (also 0.5%) to $73.59 per barrel.

What preceded this

As reported by Reuters, the cause of this increase is Hurricane Milton, which has struck the west coast of Florida, causing tornadoes and a threat of rising sea levels. The storm has particularly impacted the world's largest oil producer and consumer.

The storm has already led to a surge in gasoline demand in the state, resulting in approximately a quarter of gas stations selling out of their supplies, which has supported oil prices.

Further price increases have been fueled by ongoing investor concerns about a potential escalation in tensions between Israel and Iran, especially after Israeli Defense Minister Yoav Gallant promised that the response to Iran would be deadly, precise, and unexpected.

Additionally, despite threats to oil production in the Middle East, weak demand continues to underpin the fundamental outlook. On Tuesday, the US Energy Information Administration (EIA) lowered its oil demand forecast for 2025 due to a slowdown in economic activity in China and North America.

EIA data released on Wednesday showed that crude oil inventories rose by 5.8 million barrels to 422.7 million barrels last week. This was more than analysts surveyed by Reuters had expected but significantly less than the forecast made by the American Petroleum Institute on Tuesday.

Hurricane Milton, which has already approached the US state of Florida, could become one of the most powerful and destructive hurricanes in the past century.

For more details on the hurricane, read the full article by RBC-Ukraine.