Crude Climbs Amid Mideast Tensions

3 Oct 2024 , 10:22 AM

Oil prices rose in early trade on Thursday as investors evaluated the intensifying crisis in the Middle East and the possibility of disruptions to petroleum flows against a well-supplied global market.

Brent crude futures rose 64 cents, or 0.87%, to $74.54 a barrel. U.S. West Texas Intermediate crude futures rose 72 cents, or 1.03%, to $70.82 per barrel.

An Israeli strike on downtown Beirut’s Bachoura neighbourhood early Thursday killed two people and injured 11, according to the Lebanese health ministry.

However, an unexpected increase in US crude stocks on Wednesday helped alleviate some supply concerns and capped oil price advances.

The Energy Information Administration reported that oil stocks in the United States increased by 3.9 million barrels to 417 million barrels in the week ended September 27, contrasting to analysts’ forecasts in a Reuters poll for a 1.3 million-barrel drop.

Some investors were unconcerned because global crude supplies have yet to be interrupted by upheaval in the key producing region, and spare OPEC capacity alleviated concerns.

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