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SINGAPORE: Brent oil futures were little changed in Asia on Thursday, hovering slightly below seven-week highs, as the market weighed geopolitical developments in the Middle East while waiting for US inventory data.
August Brent rose 9 cents to $85.16 per barrel by 9:30 a.m. Saudi time.
Meanwhile, US West Texas Intermediate futures for July, which expire on Thursday, dipped 15 cents at $81.42 per barrel.
There was no WTI settlement on Wednesday due to a US holiday, which kept trading largely subdued. The more active August contract fell 15 cents to $80.56 per barrel.
Brent crude futures edged up in early trade on Thursday as the market digested news of Israeli tanks advancing into Gaza.
Israeli troops, backed by tanks, warplanes and drones, moved farther into the city of Rafah, killing eight people, residents and Palestinian medics said.
“Markets anticipate an escalation in the Gaza crisis to dent the oil supplies from the key producing region,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
However, the concerns over an inventory build appear to be overshadowing fears of escalating geopolitical stress for now, Sachdeva said.
WTI crude slipped ahead of the US government’s oil inventories report, which was delayed by a day due to the national holiday.
The Energy Information Administration is due to release last week’s oil stocks data at 6:00 p.m. Saudi time on Thursday.
An industry report released on Tuesday showed US crude stocks rose by 2.264 million barrels in the week ended June 14, market sources said, citing American Petroleum Institute figures, while gasoline inventories fell.
“EIA’s weekly oil inventory report will be scoured for any signs of weak demand,” said ANZ Research analysts on Thursday.