Oil prices have been experiencing a lot of ups and downs recently due to various factors. One of the main concerns for energy markets is the uncertainty surrounding the Israeli response to the Iranian attack and the potential consequences of this back and forth. At the same time, Hurricane Milton, a Category 5 storm, is expected to hit the coast of Florida soon, which could also impact energy facilities in the region.
In the United States, preparations are underway for Hurricane Milton, with the largest evacuation of residents since 2017 being carried out in anticipation of the storm. The path of the hurricane may intersect with oil and natural gas facilities and pipelines, leading to widespread shutdowns. This could further add to the volatility in oil prices.
On the international front, US President Joe Biden is expected to have a phone call with Israeli Prime Minister Benjamin Netanyahu to discuss a plan of action in response to the recent Iranian attack. The lack of coordination between the US and Israel on this issue has caused some frustration among American officials, as they fear an escalation in the region could lead to a spike in energy prices just days before the US elections.
The situation in the Middle East is tense, with the possibility of further escalations and attacks looming. Israeli Prime Minister Netanyahu is under pressure to respond to the Iranian attack, and the lack of coordination with the US may indicate that he is considering targets that the US would not approve of. This could potentially lead to a regional war, further impacting energy prices.
On the economic front, markets are also keeping an eye on the US oil inventory figures, the Federal Open Market Committee meeting minutes, and the Consumer Price Index reading for September. A higher-than-expected reading for inflation figures could influence the Federal Reserve’s decision on interest rates, impacting oil prices as well.
Overall, the combination of geopolitical tensions in the Middle East, the impact of Hurricane Milton on energy facilities, and economic indicators could lead to continued volatility in oil prices in the coming days. Investors and market watchers will need to closely monitor these developments to anticipate potential fluctuations in the energy market.
