Oil prices ticked higher in early trade on Thursday as investors weighed the escalating conflict in the Middle East and the potential for disruption to crude flows, against an amply-supplied global market.
Brent crude futures increased 64 cents, or 0.87%, to $74.54 a barrel as of 0006 GMT. U.S. West Texas Intermediate crude futures gained 72 cents, or 1.03%, to $70.82 a barrel.
An Israeli strike on central Beirut's Bachoura neighbourhood early on Thursday left two killed and 11 wounded, the Lebanese health ministry said in a statement.
Iran was drawn into the conflict on Tuesday after it fired more than 180 ballistic missiles at Israel in an escalation of hostilities, which have seeped out of Israel and Palestine into Lebanon and further east.
But an unexpected build in U.S. crude inventories on Wednesday helped ease some supply concerns and curbed oil price gains.
U.S. crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended Sept. 27, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel draw.
"Swelling U.S. inventories added evidence that the market is well supplied and can withstand any disruptions," ANZ analysts said in a note.
Some investors remained unfazed as global crude supplies have yet to be disrupted by unrest in the key producing region, and spare OPEC capacity tempered worries.
"After Iran's attack, prices may stay elevated or remain more volatile for a little longer, but there's enough production, there's enough supply in the world," chief executive officer of East Daley Analytics, Jim Simpson told Reuters.
OPEC has enough spare oil capacity to compensate for a full loss of Iranian supply if Israel knocks out that country's facilities.
However, traders worry that the producer group would struggle if Iran retaliates by hitting installations of its Gulf neighbours.
"The effectively available spare capacity might be much lower if renewed attacks on energy infrastructure on countries in the region happen," said Giovanni Staunovo, analyst at UBS.
Latest Stories
-
Organised Labour will hear from government before Oct. 10 strike – Palgrave Boakye-Danquah assures
6 mins -
Mrs Vida Ama Atta Essel
41 mins -
Telecel Ghana Foundation’s HealthFest & Rural Ultrasound Initiatives impacts lives in Teacher Mante, Eastern Region
50 mins -
Singapore’s disgraced former transport minister jailed for 12 months in landmark case
1 hour -
The secret wars between the UN and AU to control African climate insurance
1 hour -
Trump ‘resorted to crimes’ to overturn 2020 election, prosecutors say
2 hours -
Oil rises as Middle East conflict deepens, gains capped by global supply outlook
2 hours -
Harris adviser meets US Muslim, Arab leaders angry at support for Israel
2 hours -
‘He’s wack, no talent,’ Wizkid throws shade at Davido, sparks fresh feud
3 hours -
‘I’m a married man’, Wizkid reveals
3 hours -
Six migrants die after Mexican soldiers fire on pick-up truck
3 hours -
Absa Bank partners Tidal Rave to empower young entrepreneurs
3 hours -
Dominican Republic to ramp up deportations as Haiti conflict worsens
4 hours -
Musk funded right-wing political non-profit years before he endorsed Trump, sources say
4 hours -
Uganda sets up state-owned firm to take stakes in mining operations
4 hours