SINGAPORE: Despite a more optimistic forecast for global supply, oil prices increased on Thursday due to the possibility of escalating hostilities in the Middle East that might impair crude oil supplies from the important exporting region.
At 9:15 a.m. Saudi time, Brent crude futures were up 94 cents, or 1.27 percent, to $74.84 a barrel. At $71.0, US West Texas Intermediate crude futures saw an increase of 99 cents, or 1.41 percent. The benchmarks had already risen above $1 during the session.
Global markets have calmed down a bit after the initial jitters caused by geopolitical threats in the Middle East, but market players are still naturally keeping a close eye on any impending Israeli response, according to Yeap Jun Rong, an IG market strategist.
Yeap stated, “The question for oil right now is whether Israel will target Iran’s energy infrastructure.”
Israel’s forces had its worst day on the Lebanese front in a year of fighting Iran-backed Hezbollah when it attacked central Beirut early on Thursday, killing at least six civilians.
The attack occurs one day after Iran escalated hostilities against Israel by firing more than 180 ballistic missiles into the country; these missiles have now leaked out of Israel and into the occupied Palestinian territories.
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