|
Brent crude oil futures gained 76 cents, or 0.9%, to $86.01 a
barrel by 0930 GMT. U.S. West Texas Intermediate crude futures
rose 69 cents, or 0.9%, to $81.60.
Both benchmarks had settled slightly higher on Wednesday.
The U.S. Energy Information Administration (EIA) reported a 3.6
million barrel jump in the country's crude oil stocks last week.
Analysts polled by Reuters had expected a drawdown of 2.9
million barrels. [EIA/S]
U.S. gasoline stocks also rose, increasing by 2.7 million
barrels. That compared with analyst expectations for a 1 million
barrel draw.
"The actual readings were nothing short of disappointing for
bulls that look for a continued (market) tightening brought
about by seasonal demand," said PVM Oil analyst John Evans.
"If it were not for the steady and incremental ratcheting up of
geopolitical risk in the Middle East, oil prices might have
found themselves on the back end of a much more negative day."
Worries over the potential for the the Israel-Hamas war in Gaza
spreading to Lebanon limited price declines.
Cross-border strains between Israel and Lebanon's Hezbollah have
been escalating in recent weeks, stoking fears of a war that
could draw in other regional powers, including major oil
producer Iran.
Were contagion to occur, it could have a significant impact on
crude supplies from the Middle East, said Panmure Gordon analyst
Ashley Kelty.
Turkish President Tayyip Erdogan said his country stood in
solidarity with Lebanon and called on the region's countries to
show their support.
Israeli forces pounded several areas across Gaza on Wednesday
and residents reported fierce fighting overnight in Rafah in the
south of the Palestinian enclave.
(Reporting by Noah Browning in London and Arunima Kumar in
BengaluruAdditional reporting by Yuka Obayashi in Tokyo and
Jeslyn Lerh in SingaporeEditing by David Goodman)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
