Crude oil futures ended sharply higher on Monday as possibility of disruptions in supply due to escalating tensions in the Middle East. US Defense Secretary Lloyd Austin ordered an aircraft carrier heading to the Middle East to sail more quickly as tensions mount in the region following high-profile assassinations blamed on Israel and the threat of retaliation. Lloyd reportedly gave the orders on the basis of his talk with Israeli Minister of Defense Yoav Gallant. However, the Organization of the Petroleum Exporting Countries (OPEC), in its monthly report lowered the demand forecast for 2024 citing lower demand conditions in China. According to the OPEC report, world oil demand is expected to rise by 2.11 million barrels per day in 2024, versus 2.25 million barrels per day anticipated in the previous month's report.
Benchmark U.S. crude oil futures for September delivery rose $3.22 or about 4.2% to $80.06 per barrel on the New York Mercantile Exchange. Brent crude for October delivery surged $2.64 or about 3.3% to $82.30 per barrel on London's Intercontinental Exchange.