Photo caption: Oil
Oil prices edged up on Thursday morning as investors considered potential escalation of U.S.-Iran tensions and fears that any attacks on Tehran or shipping could lead to supply disruptions.
Brent crude oil futures were up 35 cents, or 0.5%, at $69.75 a barrel by 0853 GMT. U.S. West Texas Intermediate crude rose 37 cents, or 0.57%, to $65.
The two benchmarks registered gains of about 0.9% and 1% respectively on Wednesday as those investor concerns overshadowed a build in U.S. crude stocks.
The possibility of disruption to the transit of 20 million barrels per day (bpd) of oil through the Strait of Hormuz supported prices despite higher U.S. inventories, said PVM analyst John Evans, adding that a weaker dollar also buoyed prices.
About a fifth of the world’s total oil consumption passes through the Strait of Hormuz.
U.S. President Donald Trump said after talks with Israeli Prime Minister Benjamin Netanyahu on Wednesday that they had yet to reach a definitive agreement on how to move forward with Iran but that negotiations with Tehran would continue.
Trump had said on Tuesday that he was considering sending a second aircraft carrier to the Middle East if a deal is not reached with Iran. The date and venue of the next round of talks have yet to be announced.
The International Energy Agency, meanwhile, lowered its forecast for 2026 global oil demand growth on Thursday, citing the impact of higher prices on consumption.
A hefty build in U.S. crude inventories also capped price gains. U.S. crude inventories rose by 8.5 million barrels to 428.8 million barrels last week, the Energy Information Administration said, far exceeding the 793,000 increase expected by analysts in a Reuters poll.
U.S. refinery utilisation rates dropped by 1.1 percentage points in the week to 89.4%, EIA data showed.
=== Reuters ===
