Middle East Turmoil Boosts Oil Prices, but Supply Concerns Temper Rally

4 Oct 2024 , 08:46 AM

Oil prices edged up in early Asian trading hours on Friday, maintaining their big weekly gains, as investors weighed the Middle East conflict and anticipated disruptions in petroleum flows against an oversupplied global market.

President Joe Biden warned on Thursday that the United States was considering strikes on Iran’s oil facilities in retribution for Tehran’s missile attack on Israel. The statements contributed to a 5% surge in oil prices.

Brent crude futures rose 9 cents, or 0.12%, to $77.71 per barrel. U.S. West Texas Intermediate crude futures rose 8 cents, or 0.11%, to $73.79 per barrel.

Both benchmarks were on track for weekly increases of around 8%.

Libya’s eastern-based government and Tripoli-based National Oil Corp declared on Thursday that all oilfields and export terminals would reopen after a dispute over the central bank’s leadership was resolved, bringing an end to a crisis that had severely restricted oil production.

Iran and Libya are both members of the OPEC. Iran, which is subject to US sanctions, produced over 4.0 million barrels per day of fuel in 2023, while Libya produced approximately 1.3 million bpd last year, according to US Energy Information Administration data.

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