WASHINGTON (dpa-AFX) - Oil prices moved up sharply on Thursday as tensions in the Middle East due to the war between Israel and Iran raising concerns about supply disruptions.
U.S. President Joe Biden said the U.S. was discussing possible strikes by Israel on Iran's oil industry. According to Bloomberg News, Biden said, 'We're discussing that. I think that would be a little - anyways,' when asked by reporters about a potential strike on Iranian oil infrastructure. 'There's nothing going to happen today, ' he added.
An attack on Iran's oil facilities could severely hurt oil supply as Israel is the seventh largest oil producer in the world, exporting around half its production to major consumers, mainly to China.
West Texas Intermediate Crude oil futures for November ended up $0.361 or about 5.2% at $73.71 a barrel.
Brent crude futures were up $3.94 or about 5.33% at $77.84 a barrel a little while ago.
OPEC and allies, collectively known as OPEC+, meanwhile, is reportedly sitting on a large amount of spare crude that could help bridge the shortfall in the event of any supply deficiency in the market.
According to analysts, the group's spare capacity would be sufficient to cover a disruption to Iran's exports if Israel strikes the Islamic Republic's oil infrastructure as retaliation for Tehran's ballistic missile attack.
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