Oil gains on Middle East tensions

LONDON: Oil prices edged higher on Thursday as investors weighed the risk of escalating tensions between the United States and Iran, raising concerns that any disruption to shipping or energy infrastructure could affect supplies.
Brent crude futures rose 35 cents, or 0.5%, to $69.75 a barrel by 0853 GMT, while U.S. West Texas Intermediate crude gained 37 cents, or 0.57%, to $65.
Both benchmarks had climbed about 1% on Wednesday as geopolitical concerns overshadowed a sharp rise in U.S. crude inventories.
Analysts said the potential disruption of around 20 million barrels per day of oil passing through the Strait of Hormuz supported prices, despite higher stockpiles. Roughly one-fifth of global oil consumption transits through the waterway.
U.S. President Donald Trump said after talks with Israeli Prime Minister Benjamin Netanyahu that no definitive agreement had been reached on Iran, but negotiations with Tehran would continue. Trump earlier said he was considering sending a second aircraft carrier to the Middle East if a deal is not reached. Details of the next round of talks have yet to be announced.
Meanwhile, the International Energy Agency lowered its forecast for global oil demand growth in 2026, citing the impact of higher prices on consumption.
U.S. crude inventories rose by 8.5 million barrels to 428.8 million barrels last week, far exceeding expectations for a 793,000-barrel increase, Energy Information Administration data showed. Refinery utilisation rates fell 1.1 percentage points to 89.4%. __ Reuters