U.S. crude oil rose nearly 3% on Wednesday, as traders fear Israel could target Iran’s oil infrastructure in retaliation for a ballistic missile attack.
Israel’s ambassador to the United Nations, Danny Danon, vowed late Tuesday that Israel will exact a “painful” response against Iran. Danon’s threat came hours after the Islamic Republic launched around 180 ballistic missiles at Israel in retaliation for the assassination of top Hamas and Hezbollah leaders.
West Texas Intermediate: November contract $71.86 per barrel, up $2.03, or 2.91%. Year to date, U.S. crude has gained less than 1%.
Brent
December contract: $75.50 per barrel, up $1.94, or 2.64%. Year to date, the global benchmark is down about 2%.
RBOB Gasoline November contract: $2.0113 per gallon, up 2.27%. Year to date, gasoline is down nearly 5%.
Natural Gas November contract: $2.984 per thousand cubic feet, up 3.04%. Year to date, gas is up nearly 19%.
The Organization of the Oil Producing Countries and its allies (known as OPEC+) is planning to increase oil production in December, and U.S. output has been set records. Demand in China, the world’s largest crude importer, has also been soft this year.