Oil inches up as war jitters outweigh surprise build in U.S. crude stocks
Oil prices rose on conflict fears in Europe and the Middle East, with unexpected U.S. crude inventory build. Concerns over escalating conflict and supply disruptions led to price increases in the oil market.
rose slightly in early trade on Wednesday as concern over escalating in Europe and the offset demand worries following an unexpected build in U.S. crude inventories.Brent crude futures for August delivery rose 6 cents to $85.39 a barrel by 0016 GMT. U.S. West Texas Intermediate crude for June was up 10 cents to $81.67 per barrel.
Both benchmarks were up by more than a $1 in the previous session after a Ukrainian drone strike led to an oil terminal fire at a major Russian port, according to Russian officials and a Ukrainian intelligence source.
In the Middle East, meanwhile, Israeli Foreign Minister warned of a nearing "all out war" with Lebanon's Hezbollah, even as the U.S. attempted to avoid a broader conflict between Israel and .
An escalating war in the region raises the prospect crude supply from key producers could be disrupted.
Keeping oil prices from rising further, U.S. rose by 2.264 million barrels in the week ended June 14, according to market sources citing figures on Tuesday. Analysts polled by Reuters had expected a 2.2 million barrel draw in crude stocks.
, however, fell by 1.077 million barrels, while distillates rose by 538,000 barrels, the sources said, speaking on condition of anonymity. [API/S]
Official U.S. stocks data from the are due at 1500 GMT.
