Oil prices edged lower on Friday following a rally earlier in the week as investors balance concerns over U.S. demand after Hurricane Milton's destruction against the potential for broader supply disruptions in the Middle East if Israel targets Iranian oil sites.
By 2:25 pm AEDT (3:25 am GMT) Brent crude oil futures dropped by 26 cents, or 0.3%, to $79.14 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 18 cents, or 0.2%, to $75.68 per barrel.
Hurricane Milton, which wreaked havoc across Florida, killing at least 10 people and leaving millions without power, has the potential to dampen fuel consumption in parts of the U.S., the world's largest oil producer and consumer.
Meanwhile, oil prices spiked after Iran launched more than 180 missiles against Israel on October 1, raising the possibility of retaliation against Iranian oil facilities. While Israel has not yet responded, the market has remained relatively flat throughout the week.
Israeli Defence Minister Yoav Gallant stated that any strike against Iran would be “lethal, precise, and surprising”.
In supply news, Libya’s National Oil Corporation (NOC) announced that it has restored production to pre-crisis levels, reaching 1.22 million barrels per day.
