Oils jumps more than 2% amid US crude drawdown, Gaza crisis

The news: Oil prices have surged amid falling US crude stocks and growing fears of an expanded conflict in the Middle East.

The numbers: West Texas crude oil futures leapt more than 2.2% to USD88.6 per barrel, while Brent futures lifted 1.97% to USD91.68 per barrel. US crude stocks fell by about 4.4 million barrels in the week to 13 October, according to American Petroleum Institute figures reported by Reuters, drowning the 300,000 barrels forecasted by analysts.

The context: Tensions in the Middle East have increased after the destruction of a hospital in Gaza city killed hundreds of Palestinians. Israeli and Palestinian officials have blamed each other for the atrocity. Leaders from Jordan and Egypt and Palestinian president Mahmoud Abbas have since cancelled plans to meet US president Joe Biden, who is visiting the region and has expressed fears about a broader conflict.