11.01.202419:06:00UTC+00Oil Futures Settle Higher On Supply Concerns

Oil futures settled higher on Thursday as prices rebounded on likely disruptions in trade and supplies amid rising tensions in the Middle East.

According to reports, Iran seized a tanker with Iraqi crude marked for delivery to Turkey on Thursday.

"The Navy of Iran's Army has announced the seizure of an American oil tanker in the Gulf of Oman with a judicial order," Iranian state media said, citing a statement from the Army.

The St Nikolas tanker had been the focus of US attention when it was accused of illegally smuggling Iranian crude oil despite sanctions and the U.S. Justice Department levied a fine of $2.4 million on the owner of the ship.

Signs of an escalating conflict in the Middle East after another Israeli strike in Rafah, supported oil prices.

Israel bombarded the southern Gaza Strip overnight, as U.S. Secretary of State Antony Blinken prepared to travel to Egypt for more talks aimed at containing Israel's war against Hamas.

Recent data showing a sharp increase in U.S. crude inventories limited the uptick in oil prices.

West Texas Intermediate Crude oil futures for February ended higher by $0.65 at $72.02 a barrel.

Brent crude futures were up $0.70 or 0.91% at $77.50 a barrel a little while ago.

Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. rose by 1.338 million barrels last week, as against forecasts for a decline of about 700,000 barrels.

Gasoline stocks increased 8 million barrels last week to 245 million barrels, while distillate stockpiles rose by 6.5 million barrels last week to 132.4 million barrels, the highest level since September 2021.