US WTI crude oil futures closed higher, driven by escalating Middle East tensions and a significant drop in OPEC oil production. The November delivery of WTI crude oil futures on the New York Mercantile Exchange rose by $1.66, or 2.44%, to settle at $69.83 per barrel. The price had surged over 5% at one point following a massive missile attack by Iran on Israel.
Iran's missile strike, targeting Israel despite its advanced air defense systems, and subsequent attacks on Gaza, have played a significant role in pushing oil prices up. The Israel Defense Forces stated that they intercepted a large portion of the 180 ballistic missiles fired by Iran. Despite this, Iran claims an 80% hit rate on their targets.
Additionally, the Houthi movement announced a new wave of attacks on merchant ships, further escalating tensions. A spokesperson for the Houthis revealed that they launched three attacks on merchant ships in the Red Sea, Arabian Sea, and Indian Ocean, including firing eight ballistic missiles at a British oil tanker.
Following political turmoil that reduced Libya's oil supply, OPEC's oil production in September witnessed a sharp decline. A survey indicated OPEC's daily oil output dropped by 480,000 barrels to 26.61 million barrels, with Libya's oil production falling by 38% due to an export halt by the eastern government amid a struggle for control over the central bank.
