Oil prices rise on the risk of broadening Middle East conflict
Istanbul, August 1 (Hibya) - Oil prices rose in early Asian trading on Thursday, extending strong gains in the previous session after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict and on signs of strong oil demand in the U.S.
Global benchmark Brent crude futures rose 67 cents, or 0.8 percent, to $81.51 per barrel by 0007 GMT, while U.S. West Texas Intermediate crude futures rose 69 cents, or 0.9 percent, to $78.60 per barrel.
Hamas leader Ismail Haniyeh was assassinated in the Iranian capital, Tehran, on Wednesday, less than 24 hours after Lebanon-based Hezbollah’s most senior military commander was killed in an Israeli strike in the capital, Beirut.
The killings fueled concern that the 10-month-old war in Gaza between Israel and Hamas was turning into a wider Middle East war, which could potentially lead to disruptions in oil supply from the region.
A set of data releases from the U.S., the world’s top oil consumer, and a weaker dollar also pushed up oil prices.
Data from the U.S. Energy Information Administration showed on Wednesday that robust export demand pushed U.S. crude oil stockpiles lower by 3.4 million barrels to 433 million barrels in the week ended July 26.
U.S. oil stocks have declined for five consecutive weeks, the longest streak since January 2021. U.S. oil demand was at a seasonal record in May as gasoline consumption surged to its highest since before the pandemic, a separate data release from the EIA showed on Wednesday.