Brent crude futures gained 63 cents, or 0.8 per cent, to $77.21 a barrel, while the U.S. WTI futures were up 63 cents, or 0.9 per cent, at $73.87 a barrel
Oil prices rose on Thursday underpinned by a spike in fuel demand as a major storm barrelled into Florida (U.S.) and concerns about potential supply disruptions in the Middle East amid heightened tensions in the region.
Brent crude futures gained 63 cents, or 0.8 per cent, to $77.21 a barrel, while the U.S. WTI futures were up 63 cents, or 0.9 per cent, at $73.87 a barrel at 0423 GMT.
The world’s biggest oil producer and consumer has been hit by a second major storm, Hurricane Milton, which made landfall on Florida’s west coast.
The storm has already driven up demand for gasoline in the state, with about a quarter of fuel stations selling out of supplies, which has helped support crude prices.
Even with threats to the oil-producing Middle Eastern region top of mind, concerns about demand continue to underpin the fundamental outlook. The U.S. Energy Information Administration (EIA) on Tuesday downgraded its demand forecast for 2025 on weakening economic activity in China and North America.
Energy Information Administration data on Wednesday showed crude inventories climbed by 5.8 million barrels to 422.7 million barrels last week. That was much lower than estimated on Tuesday by the American Petroleum Institute (API) industry group.
However, oil demand has grown this month, as per analysts at JPMorgan, helping support prices.
In the U.S., gasoline demand soared by 800 kbd week over week. Across Asia, flight activity bounced back after being disrupted by multiple typhoons. In China, daily flight activity soared to an eight-week high, the analysts said in a note.
