Oil prices skyrocketed on Thursday after an oil tanker was boarded by an armed group in Oman, heightening the prospect of raising conflict in the Middle East.
Brent crude futures profited $1.03, or 1.3%, to $77.83 a barrel by 09:16 GMT and U.S. West Texas Intermediate crude futures gained 98 cents, or 1.4%, to $72.35, though the gains were limited by a surprise build in the U.S. crude stockpiles.
The United Kingdom Maritime Trade Operations –UKMTO authority received a report on Thursday that a watercraft about 50 nautical miles east of Oman’s coast was embarked by four to five armed individuals.
The previous day Yemen-based Houthis mounted their largest attack yet on commercial shipping lanes in the Red Sea and Israeli strikes in southern and central Gaza also intensified.
The United States and Britain hinted they would take further measures if the attacks continued. The United Nations Security Council, meanwhile, passed a resolution demanding an immediate end to the Houthi strikes.
The oil benchmarks had plunged lower on Wednesday after a surprise jump in the U.S. crude stockpiles highlighted concerns over demand in the world’s largest oil market.
Also, the U.S. crude directory rose by 1.3 million barrels to 432.4 million barrels in January 5, the EIA said on Wednesday, against analyst expectations for a draw of 700,000 barrels.
All focus is now on the U.S. inflation data, which will shape views on how soon the Federal Reserve might slash its interest rates.
