Oil prices climbed by more than 1% on Thursday, almost reversing previous session’s losses, as Middle East tensions came back into focus ahead of the U.S. election despite a mixed bag of U.S. fuel inventories.
Brent crude futures rose 95 cents, or 1.27% to $75.91 at 0302 GMT, while U.S. West Texas Intermediate crude futures climbed $1, or 1.41%, to $71.77 as an exchange of heavy fire between Israel and Hezbollah continued to worry markets about supply.
Oil prices have gained nearly 4% so far this week, helping trim last week’s losses of than 7% on worries about Chinese demand and easing concerns about potential disruptions caused by fighting in the Middle East.
“The bumpy play in oil prices is a mix of technical reaction to uncertainty ahead,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova.
“Amid lack for supporting catalyst and with sore sentiments all over oil markets, oil bulls jumping at any additional headline of escalating conflict in Middle East, looks well justified,” she added.
Israel launched strikes on Syrian capital Damascus early on Thursday, Syrian state media said, the latest such attack.
