Brent crude futures gained 95 cents, or 1.27% to $75.91, while U.S. WTI crude futures jumped $1, or 1.41%, to $71.77 as escalating Middle East tensions continued to worry markets about supply
Oil prices jumped by more than 1% on Thursday, almost reversing previous session’s losses, as Middle East tensions came back into focus ahead of the U.S. election despite a mixed bag of U.S. fuel inventories.
Brent crude futures gained 95 cents, or 1.27% to $75.91 at 0302 GMT, while U.S. WTI crude futures jumped $1, or 1.41%, to $71.77 as escalating Middle East tensions continued to worry markets about supply.
Oil prices have added almost 4% so far this week, helping trim last week’s losses of more than 7% on worries about Chinese demand and concerns about potential disruptions caused by fighting in the Middle East.
The bumpy play in oil prices is a mix of technical reaction to uncertainty ahead, said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Amid lack for supporting catalyst and with sore sentiments all over oil markets, oil bulls jumping at any additional headline of escalating conflict in Middle East, looks well justified, she said.
The intensifying fighting come as Washington makes a final major push for peace between Israel and Iran-backed groups before the November 5 U.S. presidential election that could alter U.S. policy in the Middle East.
The current volatility ahead of a critical week of U.S. Election followed with Fed’s policy decision is ensuring enough traction to cause wilder fluctuations, even though supplies remain ample, she said.
Meanwhile, U.S. crude inventories rose by 5.5 million barrels last week, as per the U.S. Energy Information Administration (EIA) on Wednesday.
Despite the stockpile accumulation, implied demand still increased, said ANZ analysts in a client note.
