Oil prices rose slightly on Wednesday amid concerns that the escalating conflict between Iran and Israel could disrupt oil supplies from the Middle East. Brent crude increased by 34 cents (0.46%) to $73.90 per barrel, while U.S. West Texas Intermediate rose 27 cents (0.39%) to $70.10. The tension followed Iran’s largest-ever missile attack on Israel, prompting fears that Israeli retaliation might target Iranian oil facilities, which could provoke further conflict, potentially involving the U.S.
However, the gains were limited by a large build in U.S. crude inventories, which rose by 3.9 million barrels in the last week, exceeding expectations of a 1.3 million-barrel draw. Rising gasoline stocks and ongoing refinery maintenance also contributed to the inventory build.
OPEC+ left its oil output policy unchanged, set to increase production by 180,000 barrels per day starting in December. Although concerns of supply disruptions persist, these planned hikes could counterbalance market fears.