Oil Prices soar higher due tensions in Middle East

The US Energy Information Administration in the previous session had said that the crude stockpiles rose by an unexpected 3.6 million barrels in the previous week due to which the prices fell steeply.

On Thursday, the oil prices soared higher, which had been supported due to the tensions in the Middle East but had failed to regain most of the losses that occurred in the previous day after a surprise build in crude stockpiles in the US which was the world’s top oil consumer.

On Wednesday Brent Crude Oil Futures and US West Texas Intermediate Crude Futures fell by more than $2. Brent Crude Oil futures had raised by 0.2 per cent, which is 14 cents to $70.52 a barrel by 0132 GMT, whereas US West Texas Intermediate crude futures had increased by 18 cents or by 0.3 per cent to $68.33 a barrel.

Earlier, there had been a projectile fire to Israel, from the Lebanese territory to the Israeli Aircraft, which struck the military had said it to be rocket launch sites in south Lebanon.

On Wednesday, Lebanon launched two rockets that struck Israel, which was responded with artillery fire in between the regional tensions over the alleged Iranian attack on the oil tanker in the Gulf in the previous week.

After the attack last Thursday, an exchange was made when Israel blamed Iran for a tanker off the coast of Oman, in which two crew members, a Briton and a Romanian were killed but Iran had denied any involvement in the attack.

On Wednesday, the US State Department had mentioned that they believed that the Iranians had hijacked Panama flagged Asphalt Princess tanker which was in the Gulf of Oman but Iran was not in a position for the confirmation of the attack.

The US Energy Information Administration in the previous session had said that the crude stockpiles rose by an unexpected 3.6 million barrels in the previous week due to which the prices fell steeply.

The Commonwealth Bank of Australia had said that it expects the Brent oil prices to rise by $85 a barrel by the fourth quarter as the demand for oil outpaces supply growth.

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