Oil gains after early drop as geopolitical risks support market
USO•Oil prices rose on Thursday after recovering from early losses, with Brent up 0.49% to $93.21 a barrel and U.S. crude up 0.31% to $86.80. Middle East tensions supported prices despite rising regional output and a reported 9 million-barrel increase in U.S. crude stocks.
1. Prices recover
Brent futures rose 45 cents to $93.21 a barrel by 0732 GMT, while U.S. West Texas Intermediate crude gained 27 cents to $86.80. Both contracts had fallen more than $1 per barrel in early Asian trading.
2. Tensions and output
Middle East production has recovered after recent disruptions, pressuring crude prices, but geopolitical risks are likely to limit further downside, Saxo Bank’s Ole Hansen said. Iranian security chief Mohsen Rezaei said Iran would not allow enriched nuclear material to leave the country and warned of consequences if the United States launched new strikes. Comments from Iranian and U.S. officials highlighted obstacles to a broader agreement that could ease tensions around the Strait of Hormuz.
3. Supply data
OPEC+ crude production rose in October, driven by higher Saudi Arabian output despite shipping disruptions through the Strait of Hormuz. U.S. crude stocks rose by 9 million barrels in the latest week, according to American Petroleum Institute data cited by market sources; official Energy Information Administration data was due later Thursday.
