Oil prices climbed over 1 percent on Thursday, nearly reversing losses from the previous session as renewed tensions in the Middle East captured market attention ahead of the U.S. presidential election.
Brent crude futures increased by 95 cents, or 1.27 percent, reaching $75.91, while U.S. West Texas Intermediate crude futures rose by $1, or 1.41 percent, to $71.77. The ongoing exchange of heavy fire between Israel and Hezbollah has raised concerns about supply disruptions, contributing to the uptick in oil prices.
Despite a mixed report on U.S. fuel inventories, with crude stockpiles rising by 5.5 million barrels last week—significantly higher than analysts’ expectations—oil prices have surged nearly 4 percent this week, helping to mitigate last week’s losses of over 7 percent.
Priyanka Sachdeva, a senior market analyst at Phillip Nova, noted that the volatility in oil prices reflects a mix of technical reactions and uncertainty ahead of the election, emphasizing that market sentiment is highly sensitive to any news regarding escalating conflicts in the Middle East. As Israel continued its military operations in Syria and Lebanon, U.S. crude demand remains robust, supported by increasing demand for distillates, particularly in Asia.
