TOKYO, Oct 11 (Askume) – Oil prices fell on Friday after rising a day earlier, but are still expected to rise for a second straight week as investors consider what could happen if Israel attacked Iranian oil facilities. Massive supply disruptions and storm damage would hit U.S. demand.
Brent crude futures fell 39 cents, or 0.5%, to $79.01 a barrel at 0152 GMT. US West Texas Intermediate crude futures fell 32 cents, or 0.4%, to $75.53 a barrel.
During the week, both benchmarks rose 1%-2%.
In the United States, Hurricane Milton entered the Atlantic Ocean on Thursday, making a devastating path through Florida, killing at least 10 people and leaving millions without power. The disruption could reduce fuel consumption in parts of the world’s biggest oil producer and consumer.
“Investors are assessing how the storm’s damage may impact the U.S. economy and fuel demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“Oil prices are likely to remain around the current 200-day average, with the main concern being whether Israel will retaliate against Iranian oil facilities,” he said.
The 200-day average price of Brent crude oil is US$81.68 per barrel, and the 200-day average price of WTI crude oil is US$77.36 per barrel.
Benchmark crude oil prices rose this month after Iran fired more than 180 missiles at Israel on October 1, raising the possibility of retaliation against Iranian oil facilities . Israel has yet to respond, with benchmark crude oil prices retreating somewhat and remaining relatively stable throughout the week.
However, Israeli Defense Minister Yoav Galant said any attack against Iran would be “deadly, precise and shocking”.
Iran supports several groups fighting Israel, including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen.
The Lebanese health ministry said Israel attacked the city of Beirut on Thursday night, killing 22 people and wounding at least 117 others. Lebanese security sources said at least one senior Hezbollah leader was also targeted.
Meanwhile, the three Gulf countries are pressing Washington to prevent Israeli attacks on Iranian oil facilities as they fear their own facilities could be targeted by Tehran’s proxies if the conflict escalates, three Gulf sources told Askume.
On the supply side, Libya’s National Oil Company (NOC) said on Thursday that production at the country’s central bank had returned to pre-crisis levels, reaching 1.22 million barrels per day.
