During the early European trading session, oil prices stabilized after a surge of 5% due to rising concerns about potential Israeli retaliation against Iranian oil facilities. Brent crude and WTI crude saw modest increases of 0.8%, reaching $78.22 and $74.30 per barrel, respectively.
This uptick followed comments from U.S. President Joe Biden, suggesting that officials were contemplating whether to support Israel's potential strike on Iranian oil infrastructure. Given that Iran ranks as the world's seventh-largest oil producer, any attack on its facilities would likely elevate the market's risk premium.
However, the price increase was capped by Libya, an OPEC member, resuming production, alongside OPEC+ preparations to boost output in December. These developments contributed to concerns about global demand and potential oversupply, limiting further price growth.
