Oil & Gas Oil eases but Middle East supply fears support gains By Reuters October 11, 2024, 8:42 AM Reuters/Quetzalli Nicte-Ha Libya's National Oil Corporation has restored production close to levels before the country's central bank crisis, reaching 1.22 million bpd Oil prices remained on target for a second straight weekly gain as investors weighed the impact of hurricane damage on US demand against any broad supply disruption if Israel attacks Iranian oil sites. Prices eased on Friday after a rally the previous day. Brent crude oil futures fell 73 cents, or 0.9 percent, at $78.67 a barrel by 12:08 GMT. US West Texas Intermediate crude futures CLc1 slipped 71 cents, also 0.9 percent, to $75.14 per barrel. Both benchmarks were headed for gains on the week. Oil prices up after strongest weekly rise in over a year Iran’s energy installations may be targeted in Israeli strikes Fears for Strait of Hormuz oil gateway in Iran-Israel face-off “A potential Israeli attack on Iranian oil infrastructure poses a binary outcome for oil markets, as it could reduce the elevated spare capacity overhang on prices while inducing a significant geopolitical risk premium, which explains the recent surge in oil market volatility,” Barclays said in a client note The destruction caused by Hurricane Milton in the US could dampen fuel consumption in some areas of the country, observers said. “Investors are evaluating how hurricane damage might impact the US economy and fuel demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities. “Oil prices are likely to hover around the current 200-day average levels, with the primary concern being whether Israel will retaliate against Iranian oil facilities,” he said. The 200-day average for Brent is at $81.68 a barrel and for WTI it’s at $77.36. Crude benchmarks spiked this month after Iran launched more than 180 missiles against Israel on October 1, raising the prospect of retaliation against Iranian oil facilities. Israel has yet to respond, and crude benchmarks have eased and remained relatively flat through the week. On the supply side, Libya’s National Oil Corporation said on Thursday it has restored production close to levels before the country’s central bank crisis, reaching 1.22 million barrels per day.