The oil market under the pressure of the hurricane and geopolitics

Oil prices showed a moderate decline on Friday, but maintained positive dynamics, aiming for a second consecutive weekly increase. Investors are analyzing how the hurricane will affect oil demand in the United States and how a potential Israeli attack on Iran could disrupt supplies.

Brent crude futures fell 0.73% to $78.80 per barrel. Contracts for WTI also fell by almost 0.8% to $75.28 per barrel.

Experts note that a potential Israeli attack on the Iranian oil infrastructure could have ambiguous consequences for the market. On the one hand, it can reduce excess production capacity by putting pressure on prices. On the other hand, it can cause a significant increase in the premium for geopolitical risk, which explains the recent volatility in the oil market.

Hurricane Milton, which passed through Florida, may lead to a decrease in fuel consumption in this region, which, in turn, may affect demand.

Recall that oil prices rose this month after Iran's rocket attacks on Israel, which increased the likelihood of retaliatory actions against Iranian oil facilities. So far, Israel has not responded, and oil prices have declined slightly this week.