Oil prices increased Thurdsay amid escalating geopolitical tensions in the Middle East and a larger-than-expected drop in US crude inventories, bolstering concerns over potential supply disruptions and strong demand prospect.
Price of international benchmark Brent crude rose by around 0.02%, trading at $68.05 per barrel at 09.43 a.m. local time (0643 GMT), up slightly from $68.03 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) crude increased by 0.09%, settling at $65.50 per barrel, compared to $65.44 in the prior session.
The Counter-Terrorism Unit of the Kurdish Regional Government (KRG) announced Wednesday that 3 separate oil fields in the city of Duhok were targeted by bomb-laden drones in the morning.
Later in the day, the Hunt oil field was also attacked with no reported casualties or significant material damage.
The US State Department condemned the attacks in a statement released Thursday, and warned such incidents pose a serious threat to Iraq’s economy and the future of international energy companies that invested in the country.
Israel's airstrikes on Syria also gave support to the rising prices. The Israeli military targeted the presidential compound and the General Staff headquarters in Damascus, adding fuel to the existing turmoil in the oil rich Middle East.
Israel Army Radio reported that the military was preparing for clashes in Syria that could last several days.
Israeli warplanes also targeted the 107th Brigade in Syria's Latakia province, according to the reports on Thursday.
These escalations in clashes and diplomatic fever in the region fed fears of supply disruptions in the Middle East, which holds a significant portion of global oil reserves, supporting an uptick in the prices.
Meanwhile, signs of sustained strong demand in the US, the world's largest oil consumer, was another contributor the upward trend in prices.
The US Energy Information Administration (EIA) reported on Wednesday that commercial crude oil inventories fell by 3.9 million barrels last week to 422.2 million barrels. Daily crude oil production declined by 10,000 barrels to 13.37 million barrels.
The drop in inventories pointed to a robust domestic demand, while the production decline reinforced supply concerns, both provided support to the increase in prices.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr