International oil prices staged a strong rebound on Thursday (October 8), with both benchmark crude grades rising more than 3.6%. The escalating geopolitical conflict in the Middle East, combined with Hurricane Isaias bearing down on the Gulf of Mexico — prompting large-scale precautionary shutdowns by offshore oil and gas operators — became the core forces driving energy prices higher.
Brent crude futures from the North Sea in London rose US$4.08, or 4.1%, to US$104.28 per barrel.
US New York West Texas Intermediate (WTI) crude futures rose US$3.21, or 3.6%, to US$91.49 per barrel.
Hit by a double blow — commercial vessels coming under attack in the Strait of Hormuz and nearly 60% of Gulf of Mexico production capacity shut down due to weather — global crude oil faces serious supply disruption concerns. Although US-Iran talks have signaled goodwill and the International Energy Agency (IEA) will accelerate stockpile releases, actual shipping risks and the offshore production halt have refocused market attention on shortage worries.
