Oil prices steadied after posting their biggest gains in a week, as the market awaited a possible retaliatory strike by Iran on Israel in response to the assassination of Hamas and Hezbollah leaders.
Brent crude futures were trading near $79 a barrel after rising 2.4% yesterday, while WTI crude approached $76. Israel continues to prepare for an attack, although comments by Iran’s president in a phone call with his French counterpart suggested there was a diplomatic path to de-escalation.
Oil prices rose after falling to seven-month lows on Monday, amid a slump in global stock markets. A disruption in crude production from Libya’s largest oilfield helped boost gains, while a rare cross-border attack by Ukrainian forces on Russia added to geopolitical tensions.
Official data from the United States on Wednesday showed crude inventories fell for a sixth straight week to their lowest since February. That could ease some concerns about weak demand in the world’s biggest oil consumer, but there were increases in stocks at the key storage hub of Cushing and in gasoline inventories.
