Oil prices rise on concerns over broader Middle East conflict, U.S. storm By Reuters

KUALA LUMPUR (Reuters) – Oil prices rose on Tuesday on fears that the escalating conflict between Israel and Hezbollah could impact supply in the key Middle East producing region and that a tropical storm could affect output in the U.S., the most the world’s largest crude oil producer at the end of this week.

November futures were up 21 cents, or 0.3 percent, at $74.11 a barrel by 0030 GMT. November futures rose 24 cents, or 0.3 percent, to $70.61.

Both contracts ended lower on Monday as concerns about demand took precedence in investors’ minds after disappointing activity in the euro zone and on lingering concerns about China’s fuel consumption.

Israel’s military said it launched air strikes on Hezbollah sites in Lebanon on Monday, which Lebanese authorities said killed 492 people and sent tens of thousands fleeing for safety in the country’s deadliest day since the last decades.

Israel and Hezbollah, an Iran-backed group based in Lebanon, exchanged fire after thousands of pagers and walkie-talkies used by Hezbollah members exploded last week. The attack was on Israel on a large scale.

Hezbollah has exchanged fire with Israeli forces across the border since its Palestinian ally Hamas in Gaza and Israel went to war on October 7.

“The oil market was concerned that rising tensions in the region were pulling oil producer OPEC closer to commitment,” bank ANZ said in a note, referring to Iran.

“Traders are also keeping an eye on the weather. The US Gulf Coast is at risk of a hurricane through the end of the week as an area of ​​turbulent weather strengthens in the Atlantic.”

US oil producers were evacuating staff from oil production platforms in the Gulf of Mexico as forecasters predicted the second major hurricane in two weeks could destroy offshore oil fields.

The US National Hurricane Center said a potential tropical storm southeast of the western tip of Cuba is expected to strengthen into a hurricane on Wednesday and intensify over the next 72 hours as it moves east Gulf of Mexico.