Oil gains as Middle East risks support prices

TOKYO: Oil prices rose on Thursday after recovering from early losses, as persistent geopolitical tensions in the Middle East offset concerns over increasing crude production in the region.
Brent crude futures gained 45 cents, or 0.49 per cent, to $93.21 per barrel by 0732 GMT, while US West Texas Intermediate (WTI) crude rose 27 cents, or 0.31 per cent, to $86.80. Both benchmarks had fallen by more than $1 per barrel during early Asian trading.
Analysts said uncertainty surrounding US-Iran negotiations and the wider regional conflict continued to support oil prices despite the recovery in Middle Eastern production.
Ole Hansen, head of commodity strategy at Saxo Bank, said the current situation was allowing regional oil output to recover despite the lack of progress in negotiations between Washington and Tehran.
Tensions remain elevated after Iranian security Chief Mohsen Rezaei warned that Iran would not allow its enriched nuclear material to leave the country and cautioned against further US military strikes.
The disagreement over Iran's nuclear programme continues to complicate efforts to reach a broader agreement and ease risks around the Strait of Hormuz, a vital route for global oil shipments.
Meanwhile, OPEC+ crude production increased in October, supported by higher output from Saudi Arabia despite shipping disruptions.
In the United States, crude inventories rose by 9 million barrels in the latest week, according to data from the American Petroleum Institute. Investors are awaiting official figures from the Energy Information Administration for further indications of supply conditions.
Market participants continue to monitor geopolitical developments, production levels and inventory data for direction in global oil markets. -Reuters