Oil Prices Drop on Rising U.S. Supply, While Middle East and Hurricane Risks Limit Declines.
Brent crude futures dropped $1.21, or 1.6%, to $75.97 a barrel, while U.S. West Texas Intermediate (WTI) futures declined by $1.07, or 1.5%, to $72.50. The Energy Information Administration reported a jump of 5.8 million barrels in U.S. crude inventories, far exceeding analysts’ forecast of a 2 million-barrel increase.
However, Bob Yawger, director of oil futures at Mizuho, noted that lower-than-expected gasoline and distillate stockpile levels helped limit oil’s price drop. Demand from Florida has also risen in anticipation of Hurricane Milton, expected to make landfall as a major storm.
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Global attention remains on the Middle East, where a potential ceasefire between Hezbollah and Israel momentarily eased price volatility. However, investors remain cautious amid fears of an Israeli attack on Iran’s oil infrastructure, particularly after recent Iranian missile strikes.
Chinese economic growth concerns add to the bearish outlook. China’s subdued economic recovery has dampened oil demand, with the U.S. Energy Information Administration downgrading its 2025 global demand forecast due to weaker growth prospects in China and North America.
