Oil prices show mixed movement as tensions escalate in Middle East

20 Jun 2024 , 09:25 AM

Brent crude futures moved higher in early trading on Thursday as Israeli tanks advanced into Gaza, while US crude futures fell on the likelihood of rising oil inventories.

Brent crude futures for August delivery increased 8 cents to $85.15 per barrel. U.S. West Texas Intermediate crude for June fell 27 cents, or 0.3%, to $81.30 per barrel.

A U.S. government holiday, Juneteenth, kept trade activity low.

Israeli troops, backed by tanks, warplanes, and drones, advanced into the Gaza Strip city of Rafah on Wednesday, killing eight people, according to residents and Palestinian medics.

As the Middle East war escalates, prices rise because a larger battle could affect the region’s oil supplies.

WTI crude, however, fell ahead of the US government’s oil inventories report, which was delayed by a day owing to a national holiday. The Energy Information Administration is scheduled to announce last week’s oil stock data 15:00 GMT on Thursday.

According to an industry report released on Tuesday, U.S. crude stocks increased by 2.264 million barrels in the week ending June 14, market sources said, citing American Petroleum Institute numbers, while petrol inventories decreased.

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