Oil prices are up 4% on concerns that Hurricane Milton in the U.S. and war in the Middle East will put global energy supplies at risk.
Brent crude oil, the international benchmark, rose 3.7% on Oct. 10 to settle at $79.40 U.S. a barrel.
West Texas Intermediate (WTI) crude oil, the U.S. standard, increased 3.6% to finish trading at $75.85 U.S. per barrel.
The rise in prices comes as the U.S. is hit by Hurricane Milton near the Gulf of Mexico, the heart of America’s oil and natural gas industry.
Crude prices are also trending higher as the conflict between Israel and its neighbors intensifies, raising concerns of all out war in the Middle East.
However, crude prices are also getting a lift from expectations that energy demand may rise in both China and the U.S., the world’s two biggest oil consumers.
New reports from energy analysts say that further economic stimulus measures from the Chinese government could boost oil demand in the nation of 1.4 billion people.
In the U.S., lower interest rates could give the world’s biggest economy a boost and spur demand for crude oil and natural gas, say analysts.
Oil prices have rebounded sharply in recent weeks after languishing throughout the summer months and trading below $70 U.S. per barrel at the end of August.
