(London) Oil prices were up on Wednesday after a strike that left hundreds dead in a Gaza hospital, raising fears of a potentially regional escalation of the war between Israel and Hamas.
Around 6 a.m. (Eastern time), a barrel of North Sea Brent for December delivery, listed in London, gained 3.27% to $92.84.
That of West Texas Intermediate (WTI), for delivery in November, listed in New York, gained 3.02% to $89.28.
“Brent oil prices are up again this Wednesday, reaching their highest level since the start of the crisis” between Israel and Hamas, notes Ricardo Evangelista, analyst at ActivTrades.
The strike “last night in a Gaza hospital raised the stakes of the conflict” and increases the risk that “other countries in the region, such as Iran, find themselves involved,” he adds.
“This scenario would almost certainly affect global oil supply and could push the price of a barrel to levels above the hundred dollar mark,” continues Mr. Evangelista.
Countries in the region like Saudi Arabia are indeed among the main oil producing and exporting countries in the world.
American President Joe Biden, visiting Israel on Wednesday, supported the version of the Israeli authorities attributing the strike on the Gaza hospital to Palestinian fighters.
Hamas attributed it to Israel and Islamic Jihad described the Israeli state’s accusations as “lies”, while international condemnations increased.
Joe Biden was scheduled to attend a summit in Jordan with Jordanian King Abdullah II, Egyptian President Abdel Fattah al-Sissi and Palestinian Authority leader Mahmoud Abbas, but Amman canceled it after the hospital strike .
“This type of diplomatic turn still generates fears of an extension of the conflict and therefore causes [the prices of] oil to jump,” adds John Evans, of PVM Energy.
US commercial crude oil inventories fell much more last week than the market expected, according to figures released Wednesday by the US Energy Information Administration (EIA), a decline following a jump demand for refined products.
These reserves fell by 4.5 million barrels during the week ended October 13, while analysts were only expecting a drop of 550,000 barrels, according to a consensus established by the Bloomberg agency.
At 419.7 million barrels, commercial stocks had not been this low at this time of year in five years.
However, the market reacted little to this publication.
Around 11 a.m. (Eastern time), the price of a barrel of American West Texas Intermediate (WTI) for delivery in November rose 1.70%, to $88.14. As for the barrel of Brent from the North Sea, due in December, it gained 1.49%, to 91.24 dollars.
This inflection in stocks is explained in particular by the rebound in crude exports (72% over one week), to the highest level in eight months, combined with a slight decline in imports (-6%).
At the same time, refined products delivered to the United States, a figure considered as a barometer of American domestic demand, also increased significantly (11%), reaching their highest level in 20 months.
This indicator has never risen to this height at this time of year, according to data from the EIA, which has published it since 1990.
Deliveries of distilled products, a category which includes diesel, have accelerated (20% over one week), as have those of propane (154%), but also gasoline (4%), for which demand was said to be slowing down. .
Under the effect of what appears to be a surge in demand, gasoline stocks fell by 2.4 million barrels, while analysts expected only a slight decline of 100,000 barrels.
Last week, the refinery utilization rate rose slightly to 86.1%, compared to 85.7% in the previous period.
Production remained at the record level recorded the previous week, at 13.2 million barrels per day.
