Oil prices rose marginally on Thursday as geopolitical concerns over escalating tensions between Russia and Ukraine countered the impact from a bigger-than-expected increase in U.S. crude inventories.
Brent crude futures rose 16 cents, or 0.2%, to $72.97 as of 0408 GMT. U.S. West Texas Intermediate crude futures rose 16 cents, or 0.23%, to $68.91.
Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets a day after it fired U.S. ATACMS missiles.
Moscow has said the use of Western weapons to strike Russian territory far from the border would be a major escalation in the conflict.
Kyiv says it needs the capability to defend itself by hitting Russian rear bases used to support Moscow’s invasion, which entered its 1,000th day this week.
“For oil, the risk is if Ukraine targets Russian energy infrastructure, while the other risk is uncertainty over how Russia responds to these attacks,” said ING analysts in a note.
