Oil prices increased slightly in early Asian trading on October 4, 2024, maintaining strong weekly gains as investors reacted to the ongoing conflict in the Middle East and potential disruptions in crude oil supplies. Brent crude futures rose by 9 cents, or 0.12%, reaching $77.71 a barrel, while U.S. West Texas Intermediate crude futures gained 8 cents, or 0.11%, to $73.79 a barrel.
Both benchmarks are on track for weekly gains of approximately 8%. President Joe Biden's comments regarding potential U.S. strikes on Iran's oil facilities in response to a missile attack on Israel contributed to a 5% surge in oil prices. Analysts note that the market is beginning to factor in the possibility of supply disruptions from the Middle East, which is responsible for about a third of global oil supply.
Despite these concerns, OPEC's spare production capacity and the absence of current supply disruptions have moderated fears. Additionally, Libya's eastern-based government and the Tripoli-based National Oil Corporation announced the reopening of all oilfields and export terminals after resolving a leadership dispute, which had significantly impacted oil production.
Iran and Libya are both OPEC members, with Iran producing approximately 4 million barrels per day in 2023 and Libya about 1.3 million barrels per day last year, according to the U.S. Energy Information Administration.