SINGAPORE- Oil prices rose marginally on Thursday as geopolitical concerns over escalating tensions between Russia and Ukraine countered the impact from a bigger-than-expected increase in US crude inventories.
Brent crude futures rose 16 cents, or 0.2 percent, to $72.97. US West Texas Intermediate crude futures rose 16 cents, or 0.23 percent, to $68.91.
Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, the latest new Western weapon it has been permitted to use on Russian targets a day after it fired US ATACMS missiles.
Moscow has said the use of Western weapons to strike Russian territory far from the border would be a major escalation in the conflict. Kyiv says it needs the capability to defend itself by hitting Russian rear bases used to support Moscow’s invasion, which entered its 1,000th day this week.
“For oil, the risk is if Ukraine targets Russian energy infrastructure, while the other risk is uncertainty over how Russia responds to these attacks,” said ING analysts in a note.
JPMorgan analysts said oil consumption recovered in the past week thanks to better travel demand in the US and India, and as the latter also showed a significant rise in industrial demand. Global oil demand is estimated to reach 103.6 million barrels per day (bpd) during the first 19 days of November, up 1.7 million bpd on-year, the analysts said in a note.
