🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Oil gains more than $2 after settlement on reports Iran preparing Israel attack

Published 2024/10/31, 03:12
Updated 2024/10/31, 21:50
© Reuters. FILE PHOTO: A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/File Photo
LCO
-
CL
-

By Georgina McCartney

HOUSTON (Reuters) -Oil prices extended gains after settlement on Thursday, rising by more than $2 per barrel on a report that Iran is preparing to attack Israel from Iraqi territory in the coming days.

WTI crude oil futures jumped $2.15 or 3.13% to $70.76 after settlement at 3:22 p.m. EDT, and Brent futures for January delivery jumped by $2.10 or 2.91% to $74.26.

Brent crude futures settled up 61 cents, or 0.84%, to $73.16 a barrel. Brent futures for December delivery expired on Thursday. The more actively traded January contract settled at $72.81. WTI futures settled up 65 cents, or 0.95%, at $69.26.

Israeli intelligence suggests Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the U.S. presidential election on Nov. 5, Axios reported on Thursday, citing two unidentified Israeli sources.

The attack is expected to be carried out from Iraq using a large number of drones and ballistic missiles, the Axios report added. The report said that carrying out the attack through pro-Iran militias in Iraq could be an attempt by Tehran to avoid another Israeli attack against strategic targets in Iran.

“This is putting back on the table the possibility that Israel may give an attack on Iran another go,” said Phil Flynn, senior analyst at Price Futures Group, warning that Iranian infrastructure may not be off-limits in an attack.

Iran is an OPEC member with production of around 3.2 million barrels per day or 3% of global output.

The week began with a large selloff with Brent and WTI futures falling more than 6% on Monday after Israel showed some restraint in its retaliatory attacks on Iran over the weekend.

The possibility that OPEC+ would delay a planned oil output increase also supported prices on Thursday.

A decision could come as early as next week, Reuters reported. OPEC+ is scheduled to meet on Dec. 1 to decide its next policy steps.

© Reuters. FILE PHOTO: A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/File Photo

In China, the world's biggest oil importer, manufacturing activity expanded in October for the first time in six months, suggesting stimulus measures are having an effect.

"Several international events have converged at the turn of the month that could see oil markets in for a bumpy ride in early November," said Rystad Energy's Sahdev, citing the U.S. election, a continually weak Chinese demand outlook, OPEC+ uncertainty and the war in the Middle East.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.