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Crude oil is one of the most sought after commodities in the world today. Its applications range from energy production to its application as a feedstock for transportation fuels and petrochemical products such as plastics, solvents and adhesives. As a result, the oil industry is one of the most powerful sectors of the world economy, and changes in benchmark oil prices have a major impact on almost all sectors of production and consumption. More than four billion tons of oil are produced worldwide each year, with the Middle East having the largest share of proven oil reserves, close to 50%.

As investors took into account the possible supply disruptions from the Middle East conflict and the impact of Hurricane Milton on fuel consumption in Florida, WTI crude oil futures fell by 0.3% to close at $75.5 on Friday. Nevertheless, the U.S. benchmark saw its second weekly rise in a row and has increased by more than 10% since Iran's missile attack on Israel.Geopolitical tensions in the Middle East, especially Israel's possible retribution for Iran's missile launch, have been the driving force behind the rally. The circumstances have sparked worries about possible Middle Eastern supply interruptions, which has fueled the price increase. While Hurricane Milton's impact may have reduced long-term gasoline usage, it did contribute to Florida's short-term fuel demand. On the demand side, the outlook improved after top crude importer China unveiled a draft law to promote private sector growth, aiming to boost investor confidence amid an economic slowdown.

Global oil reserves: 1.7 trillion barrel. Estimated daily global oil demand in 2022: 99.4 million barrel. Global oil production in 2021: 4.25 billion tons. Despite growing concerns about the use of fossil fuels, oil consumption remains at an all-time high. The US is the country with the highest oil consumption worldwide, followed by China, whose oil demand has increased steadily over the past decade. Due to the lack of significant reserves in the country, China is also the world's top oil importer.