Oil prices experienced an uptick on Thursday as concerns over a potential escalation of conflict in the Middle East, which could impact crude oil shipments from this vital exporting region, eclipsed a more favorable global supply forecast.
Brent crude futures climbed by 80 cents, or 1.08 percent, reaching $74.70 a barrel as of 04:05 GMT. Meanwhile, U.S. West Texas Intermediate crude futures rose by 85 cents, or 1.21 percent, to $70.95.
Read more: Oil prices jump as Middle East concerns escalate, OPEC+ prepares for market review
In the U.S., crude inventories saw an increase of 3.9 million barrels, totaling 417 million barrels for the week ending on September 27, according to the Energy Information Administration. This figure contrasts with expectations from a Reuters poll, which had predicted a decrease of 1.3 million barrels.
Despite the geopolitical tensions, some investors remained optimistic, noting that global crude supplies have not yet been affected by the unrest in the region, and the spare capacity within the Organization of the Petroleum Exporting Countries (OPEC) is helping to alleviate concerns.
OPEC has sufficient spare oil capacity to cover a complete loss of Iranian supply in the event that facilities are targeted. However, traders are apprehensive that the producer group might face challenges, particularly if tensions in the Middle East escalate.
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