LONDON: Oil rose towards $109 a barrel yesterday as a showdown between Israel and the Palestinians stoked worries about supply, but ample stockpiles and concern about the well-being of the global economy tempered gains. Brent has held above $100 for most of this year on fears of disruption from the Middle East with a weak demand outlook capping further gains. Brent crude rose 70 cents to $108.71 a barrel by 1450 GMT. US oil gained 89 cents to $86.34.
The unrest has resulted in Brent futures rising more than the US benchmark, which is weighed down by US factors such as higher inventories, weak demand growth outlook and a potential financial crisis.
US crude inventories rose last week while petrol and distillate stockpiles fell along the East Coast where the fuel distribution system was still recovering from Hurricane Sandy, the US Energy Administration said. Crude stockpiles in the world’s largest consumer rose nearly 1.1 million barrels, below estimates for a build of 1.9 million barrels.
Reuters
