Oil prices edge higher on Thursday

Oil prices edged higher on Thursday as escalating tensions between the US and Iran fuelled concerns over potential supply disruptions in the Middle East.

Brent crude rose 27 cents, or 0.39 per cent, to $69.67 a barrel by 0350 GMT, while US West Texas Intermediate (WTI) gained 29 cents, or 0.45 per cent, to $64.92. Both benchmarks had settled higher on Wednesday, with Brent up 0.87 per cent and WTI climbing more than 1.05 per cent, as geopolitical worries outweighed a sharp rise in US crude inventories.

Stronger-than-expected US jobs data, showing accelerated employment growth and a 4.3 per cent unemployment rate in January, supported demand expectations. However, gains were capped after US crude inventories surged by 8.5 million barrels to 428.8 million barrels last week, far exceeding forecasts.

Market participants noted that global inventory builds have generally undershot expectations this year and that positions in crude futures remain moderate, leaving prices biased to the upside amid geopolitical risks and tighter sanctions on Russian oil.