Oil prices moved higher during Thursday's Asian deals as investors monitored escalating tensions between the United States and Iran, offsetting the impact of a sharp rise in U.S. crude inventories.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures were up 36 cents, or 0.5%, at US$69.76, while U.S. West Texas Intermediate crude gained 40 cents, or 0.6%, to US$65.02.
The Wall Street Journal reported that Trump administration officials have discussed whether to seize additional tankers transporting Iranian oil but have so far refrained, citing concerns about likely retaliation from Tehran and possible disruption to global oil markets.
U.S. President Donald Trump said after talks with Israeli Prime Minister Benjamin Netanyahu on Wednesday that there was no “definitive” agreement on how to proceed with Iran, though he stressed that negotiations would continue.
Earlier in the week, Trump said he was considering deploying a second aircraft carrier to the Middle East if a deal with Iran is not reached, even as Washington and Tehran prepared to resume discussions.
U.S. and Iranian diplomats held indirect talks in Oman last week, though details of the next round — including timing and location — have yet to be announced.
Supporting demand expectations, U.S. job growth accelerated unexpectedly in January, and the unemployment rate fell to 4.3%, according to data released by the Bureau of Labor Statistics (BLS).
However, gains in oil prices were capped by a substantial increase in US crude inventories. The Energy Information Administration reported that stockpiles rose by 8.5 million barrels to 428.8 million barrels last week, far exceeding analysts’ expectations for an 800,000-barrel build.
