Oil prices rise as conflict puts supply at risk

Crude oil prices climbed following reports of an imminent attack on Israel, exacerbating market concerns that the Israel-Hamas war could spread across the region and put oil supply at risk, ANZ Bank said in a Thursday note.

The reports come after Iran threatened to retaliate against an attack on its embassy in Syria that killed a top military commander. Earlier this week, Iran’s Revolutionary Guard warned it has the option to disrupt trade through the Strait of Hormuz.

Brent crude was at US$90.53 per barrel and West Texas Intermediate crude was at US$86.24/b at last look early Thursday. Earlier in the session, prices were under pressure following a build in US crude and gasoline inventories, the bank noted.

Sentiment is likely to remain bullish with support from OPEC supply cuts and rising tensions in the Middle East, which are likely to keep the geopolitical premium high, ANZ Bank said. Banks Face Risks over 24hrs FX Positions Sell Down

US crude oil inventories gained 5.9 million barrels week over week to 457.3 million barrels in the week ended April 5, the US Energy Information Administration reported Wednesday.

Crude oil production remained unchanged at 13.100 million barrels per day, the EIA reported.

Crude oil imports edged higher by 0.24 million b/d week over week to 6.508 million b/d, while crude oil exports fell 0.11 million b/d to 3.948 million b/d.

US gasoline stocks also rose 0.7 million barrels week over week to 228.5 million barrels, according to the EIA.