Crude Slumps, Supply Worries Linger

11 Oct 2024 , 10:14 AM

Oil fell on Friday after rallying the day before, but prices remained on track for a second straight weekly rise as investors assessed the impact of storm damage on US demand against the possibility of widespread supply disruption if Israel hits Iranian oil sites.

Crude benchmarks rose this month after Iran fired more than 180 missiles at Israel on October 1, raising the possibility of retaliation against Iranian oil infrastructure. Israel has yet to reply, and crude benchmarks have softened and remained essentially flat this week.

Brent crude oil futures slid 39 cents, or 0.5%, to $79.01 a barrel. US West Texas Intermediate oil futures fell 32 cents, or 0.4%, to $75.53 per barrel.

Both benchmarks were expected to climb between 1% and 2% this week.

Hurricane Milton smashed into the Atlantic Ocean on Thursday after wreaking havoc throughout Florida, killing at least ten people and knocking out electricity to millions.

However, Israeli Defence Minister Yoav Gallant has stated that any strike on Iran will be “lethal, precise, and surprising.”

Iran supports many factions opposing Israel, including Hezbollah in Lebanon, Hamas in Gaza, and the Houthis in Yemen.

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