Why are oil prices up today? - Oct 3

[dan_s]

Trading Economics:
WTI crude oil futures surged 4% to $73 per barrel on Thursday, extending the week’s surge to a one-month high after US President Biden refrained from outright condemning the possibility that Israel may attack Iran’s oil facilities. < News Flash: Israel does not care what Joe Biden thinks.
> Besides the consequent shock to short-term supplies that such an attack would bring, oil prices were also lifted by the risk premium in futures amid the increasing escalation of geopolitical tensions in the Middle East. Tel-Aviv had vowed to retaliate against Iran’s attack through a series of ballistic missiles this week, before increasing its activity in Beirut amid its fight with Hezbollah.
> In the meantime, signs of resilience in the US economy also supported the outlook on fuel demand in the world’s top oil consumer. This includes a series of robust labor market indicators released through the week ahead of the key jobs report due tomorrow, in addition to a surge in the ISM Services PMI.

Short covering continues in the afternoon.

The "Right Price" for WTI is within the $75 to $85 range.