Industry Updates: Surge in Oil Prices, US port Strikes Averted

Oil prices surged Thursday as fears of a wider escalation in the Middle East region between Israel and Iran could result in the targeting of vital oil facilities.

According to the Reuters News Agency, Brent crude futures settled up $3.72, or 5.03%, at $77.62 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled up $3.61, or 5.15%, to $73.71. Brent futures reached an intraday high of $77.89 per barrel, while WTI futures peaked at $73.97 per barrel, both hitting one-month highs.

The highs were reported following a stunning intervention by US President Joe Biden after he indicated a willingness to assist Israel in striking Iranian oil targets.

As a member of the Organisation of the Petroleum Exporting Countries (OPEC) Iran is responsible for 3 percent of global oil output producing over 3 million barrels per day.

A senior analyst for the Price Futures Group Phil Flynn said that up until now there has been no disruption so current volatility will “test the mettle of the market.”

However, fears of a possible oil spike are alleviated by growing signs of robust oil supply with U.S Crude Inventories rising by 3.9 million barrels to reach over 400 million barrels while OPEC said it has enough inventory to withstand a drop in Iranian supplies.

Moving companies are advised to keep an eye on developments with higher oil prices feeding into higher petrol and diesel costs.

As the conflict persists there is a drive among western nations to evacuate nationals in Lebanon.

Israeli Prime Minister Benjamin Netanyahu has vowed “vast destruction” following Iran’s ballistic missile strike in Tel Aviv Tuesday as Israel warns over 20 town in southern Lebanon to evacuate as cross border incursions continue.

Already, almost a million people have fled with over 1,000 dead in the war-torn country.

Many foreign embassies are using X to communicate to their citizens to leave the country as the region is home to many foreign diplomats and nationals.

Here’s a breakdown of the foreign populations on a country-by-country basis:

• Ireland - 100

• United States - 86,000

• Australia - 15,000

• United Kingdom - 4,000-6,000

• France - 20,000

• Canada - 45,000-75,000

• Germany - 1,800

The Union representing U.S dockworkers at the East and Gulf Coast ports reached a deal Thursday to avoid any further strikes until January of next year alleviating potential disruption to close to 20 vital ports that began Tuesday.

The International Longshoremen’s Association announced the negotiation to a new contract today with the United States Maritime Alliance (USMX) a shipping industry group representing terminal operators and ocean carriers.

In a statement, the two sides said: The two sides have "reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues," the ILA and USMX said in joint statement Thursday evening announcing the agreement. 

The statement added that "all current job actions will cease and all work covered by the Master Contract will resume."

Dock workers had sought a pay increase of 77 percent or $5 more per hour. While a 50 percent increase was offered it was not enough to avoid the strike.

Currently, doc workers in the US can earn over $80,000 per annum with some working overtime earning $100,000.

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