Two major crises in the oil market hit at the same time! International oil prices surge, soaring above US$104
Quick Look
- International oil prices closed up 4% on Thursday, with Brent crude oil rising 4.1% to US$104.28/barrel, and WTI rising 3.6% to US$91.49/barrel.
- The gains were driven by continued concerns about war in the Middle East and intensifying supply disruptions as Hurricane Isaias approaches the Gulf of Mexico.
- The United States has imposed new sanctions on Iran, and 62.9% of the Gulf of Mexico oil production capacity has been shut down.
AI-generated summary
Why It Matters
The market continues to pay attention to the situation in the Middle East and U.S. relations with Iran, while hurricane seasonality affects oil production in the Gulf of Mexico.
International oil prices closed up 4% on Thursday (8th). (AFP)
[Financial Channel/Comprehensive Report] International oil prices closed up 4% on Thursday (8th) as the market renewed concerns about the continuing war in the Middle East and the approach of Hurricane Isaias to the U.S. Gulf Coast, resulting in increasing supply disruptions.
Brent crude oil futures closed up $4.08, or 4.1%, at $104.28 a barrel.
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U.S. West Texas Intermediate (WTI) crude oil futures in New York rose $3.21, or 3.6%, to $91.49 a barrel.
The prices of the two major crude oil futures rose by more than $5 per barrel during the session.
Brent crude oil prices hit their highest level since September 29 due to market concerns about a possible U.S. attack on Iran and the expected landfall of Hurricane Isaias in the U.S. Gulf of Mexico on Friday.
U.S. President Trump said that Washington is having productive discussions with Iran and promised not to attack Iran before the U.S. midterm elections on November 3. Oil prices fell from their intraday highs after the remarks.
Iran's Tasnim News Agency reported that Iranian Foreign Minister Abbas Araqchi said that Tehran is reviewing the United States' response to Iran's proposal. The proposal advocates reopening the Strait of Hormuz within seven days, and Iran said it would respond within a few days.
However, the United States imposed a new round of sanctions on Iran on Thursday. The U.S. Treasury Department stated that the sanctions targeted relevant individuals, networks, and 17 ships transporting Iranian crude oil, petroleum products, and petrochemical products, with the purpose of further increasing economic pressure on Tehran.
Hurricane Isaias is moving toward U.S. offshore oil production areas, forcing companies to shut down offshore production platforms.
According to data released by the U.S. Marine Mineral Management Agency on Thursday, oil and natural gas producers in the U.S. Gulf of Mexico have shut down approximately 1.3 million barrels of oil production capacity per day as of Thursday, equivalent to 62.9% of current oil production.
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What to Watch
AI outlook — possibilities, not facts
International oil prices may rise further if Hurricane Isaias causes long-term disruptions to oil production capacity in the Gulf of Mexico
Possible · Within weeks
A breakdown in U.S.-Iran talks could trigger a military conflict and further push up oil prices
Possible · Within months
Open Questions
- What is Iran’s final response to the US proposal?
- What is the actual impact of US sanctions on Iran’s crude oil exports?
- Exact damage assessment to Gulf of Mexico oil facilities from Hurricane Isaias?
