The price of Brent crude oil futures, which expire in December, reached $113.25 per barrel, indicating a 2.2% increase. The price of West Texas Intermediate crude oil also closed at $102.93 per barrel, up 0.9%. These two contracts have increased by 15.5% and 13.9% respectively in October.
Impact of Military Tensions on the Oil Market
Dennis Kessler, Senior Vice President of Trading at BOK Financial, stated that traders' focus will remain on the flow of oil exports from the Middle East and the potential escalation of tensions from American forces and their allies. The consequences of the military aggression by the United States and the Israeli regime against Iran, which began on February 28, continue, and companies are trying to adapt to the disruptions caused in commercial shipping through the Strait of Hormuz.
Read more: PARS firefighters were present at the war operation line
Security News and Its Impact on the Oil Market
The UK Maritime Trade Operations (UKMTO) reported on Friday an incident involving a tanker in the Strait of Hormuz. These incidents indicate an increase in insecurity in a region considered one of the most important oil transport corridors in the world. In this context, according to a report on Thursday from Saxo Bank, oil prices may become even more volatile in the coming weeks due to the recent elections in the Israeli regime and the U.S. midterm elections on November 3. The bank predicts that crude oil will trade at a higher range between $70 and $90 per barrel even after the conflicts end, while before the war, this price was in the range of $60 to $70.
Meanwhile, the U.S. Energy Information Administration (EIA) reported in its monthly oil supply report that the number of oil rigs in the U.S., an indicator of future production, has increased by two. This comes as U.S. crude oil production increased in August, while demand for crude oil and petroleum products has decreased.
In another development, the National Oil Corporation of Libya announced that an armed group closed the valve of the main crude oil pipeline from Hamada, which connects the Hamada field to the Zawiya refinery, on Friday. This closure has halted the flow of about 15,000 barrels per day. This action could also impact the oil market and exacerbate the imbalance in supply and demand.
Read more: U.S. oil companies made over $130 billion in profit in 6 months · Oil prices rise due to attack on Saudi refinery
