Oil rises on prospects of wider Middle East conflict, firmer global supply caps gains

Oil prices rose on Thursday as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the key exporting region overshadowed a stronger global supply outlook, Reuters reported.

Brent crude futures gained 80 cents, or 1.08%, to $74.7 a barrel as of 0405 GMT. U.S. West Texas Intermediate crude futures gained 85 cents, or 1.21%, to $70.95.

Meanwhile, U.S. crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended on Sept. 27, the Energy Information Administration said, compared with expectations in a Reuters poll for a 1.3 million-barrel draw.

“Swelling U.S. inventories added evidence that the market is well supplied and can withstand any disruptions,” ANZ analysts said in a note.