At the beginning of the Asian market on Thursday (September 12th), international oil prices fluctuated narrowly, with US crude oil currently trading around $67.50 per barrel. Oil prices rose more than 2% on Wednesday, amid concerns that Hurricane Francine's landfall in Louisiana could cause prolonged shutdowns in offshore oil producing areas of the United States.

Brent crude oil futures closed at $70.61 per barrel, up $1.42 or 2.05% on Wednesday. US crude oil futures closed at $67.31 per barrel, up $1.56, or 2.37%.

Oil prices have shaken off the impact of the increase in crude oil inventories reported by the US Energy Information Administration on Wednesday.

EIA reported that crude oil inventories increased by 833000 barrels in the week ending September 6, reaching 419.1 million barrels, while a Reuters survey showed analysts' expectations for an increase of 987000 barrels.

The crude oil inventory at the Cushing delivery center in Oklahoma decreased by 1.7 million barrels last week.

Matt Smith, Chief Oil Analyst at Kpler, said, "The slight increase in crude oil inventories is not exciting, but the further decrease in Cushing crude oil inventories has taken the lead." EIA data shows that Cushing's inventories have fallen for nine weeks in the past 10 weeks, reaching their lowest level since early November last year.

On Tuesday, after OPEC lowered its forecast for 2024 oil demand growth for the second time, both major oil contracts experienced a decline. Brent crude fell below $70, hitting its lowest price since December 2021, and US crude fell to its lowest price since May 2023. Wednesday's rebound was partly due to support from bargain hunting and some bearish profit taking.

Other analysts have expressed support for concerns about Hurricane Francine disrupting production in the world's largest oil producing country, the United States.

The US Security and Environmental Enforcement Agency stated that as of Wednesday, 39% of crude oil production in the Gulf of Mexico has been shut down as companies have evacuated their employees from the impact area of Francine.

The bureau also stated that 49% of natural gas production in the Gulf of Mexico has been shut down due to the impact of the storm.

The geopolitical situation also provides support for oil prices.

On the 11th, the media office of the Palestinian Islamic Resistance Movement (Hamas) issued a statement saying that the Israeli army bombed a school in the Nuseirat refugee camp in central Gaza Strip, causing at least 18 deaths and multiple injuries. Six UN agency staff members were killed in an attack in the Gaza Strip.

The statement said that the attacked Jauni school accommodated thousands of displaced Palestinian civilians, including rescue organization workers. Since the outbreak of a new round of Israeli Palestinian conflict, the Israeli military has bombed over 18 schools and shelters for displaced people in the Nuseirat refugee camp.

On the 11th, the Israel Defense Forces issued a statement saying that the Israeli Air Force carried out precise strikes on the Hamas command and control center inside the Jauni school in the central Gaza Strip. Hamas militants used the center to plan and carry out attacks against Israel.

According to data released by the Palestinian Gaza Strip Health Department on the 11th, since the outbreak of the new round of Israeli Palestinian conflict in October last year, Israel's military operations in the Gaza Strip have caused over 41000 Palestinian deaths and over 95000 injuries.

According to the Jerusalem Post on Wednesday, the Israeli Air Force has struck over 30 Hezbollah targets in southern Lebanon.

According to a report by The Times of Israel on Wednesday, Lebanese media reported that Israel launched multiple airstrikes on targets in southern Lebanon at night.

According to multiple Western media reports, US President Biden said on September 10th local time that he is "studying" the possibility of allowing Ukraine to use American made long-range missiles to strike Russia. Ukraine has recently repeatedly called on Western countries to allow its military to use its provided long-range weapons to strike deep into Russian territory. The "Aksios News Network" of the United States quoted the Chairman of the Foreign Affairs Committee of the House of Representatives of the United States, Michael McCall, as reporting that Antony Blinken will convey the permission of the United States to allow the Ukrainian army to use the US made army tactical missile system to attack Russia during his visit to Ukraine on the 11th.

US Secretary of State Antony Blinken and British Foreign Secretary Lamy met with Ukrainian President Zelensky in Kiev on Wednesday and announced new support, but there was no breakthrough in the issue of long-range and in-depth attacks on Russia that Ukraine is eager to seek.

Antony Blinken and Lamy said that they talked about Ukraine's war goals and the help they can provide. Antony Blinken announced more than 700 million dollars of support for Ukraine. Lamy stated that the UK will provide an additional £ 600 million (approximately $781 million).

Antony Blinken told reporters, "We also discussed long-range firepower and other issues. As I said at the beginning, I will take these discussions back to Washington and brief the President on what I have heard."

The IEA will release the monthly crude oil market report on this trading day, and investors need to focus on it. In addition, they need to pay attention to the changes in the number of US initial claims for unemployment benefits and the performance of the US August PPI data, and continue to pay attention to the impact of news related to geographical situation.

Continuous daily chart of US crude oil