Middle East Tensions Fuel Oil Price Surge: October Ends with 3% Gain

The global oil market witnessed another day of upward momentum as October drew to a close. Crude prices inched higher, fueled by whispers of potential conflict escalation between Iran and Israel.

This geopolitical uncertainty added a risk premium to oil futures, pushing them to end the month on a positive note. Brent crude, the international benchmark, saw its most active contracts rise by 0.90%.

In addition, traders on the Intercontinental Exchange in London watched as prices settled at $72.81 per barrel. This uptick contributed to a monthly gain of 2.90% for Brent crude.

Across the Atlantic, West Texas Intermediate (WTI) followed a similar trajectory. The U.S. benchmark climbed 0.94% to reach $69.26 per barrel on the New York Mercantile Exchange.

WTI outperformed its global counterpart, recording a 3.52% increase for October. Market participants remained on edge as rumors swirled about Iran’s possible retaliation against Israel.

Middle East Tensions Fuel Oil Price Surge: October Ends with 3% Gain. (Photo Internet reproduction)

Sources suggested that Iranian forces might launch an attack from Iraqi soil, potentially using drones and missiles. This speculation injected a fresh dose of anxiety into an already tense market.

Oil Market Dynamics

Meanwhile, whispers of a possible delay in OPEC+ production increases caught traders’ attention. The oil cartel and its allies had previously planned to boost output by 180,000 barrels per day starting in December.

However, sources hinted at a potential postponement due to sluggish demand, particularly from China. Adding to the complex market dynamics, U.S. crude inventories reported a significant drawdown.

This unexpected reduction in stockpiles provided additional support to oil prices, as it suggested tighter supply conditions in the world’s largest oil consumer. As the curtain falls on October, the oil market remains in a delicate balance.

Geopolitical risks and supply-demand uncertainties continue to shape price movements, leaving traders and analysts alike watching closely for the next market-moving development.