Oil prices rebound amid the uncertainty of the situation in the Middle East

Oil prices rose in early trading in Asia on Tuesday, October 24, recouping some of the previous day’s losses as investors continued to worry that the war between Israel and Hamas could escalate into a broader conflict in the oil-exporting region, causing potential supply disruptions.

By 00:32 GMT, Brent crude futures rose 70 cents, or 0.8%, to $90.53 per barrel, while US West Texas Intermediate crude futures increased 71 cents, or 0.8%, to $86.20 per barrel.

The two benchmarks fell more than 2% yesterday, Monday, as diplomatic efforts intensified in the Middle East, the largest oil supply region in the world, to contain the conflict between Israel and Hamas, which allayed investors’ fears about supply disruptions.

A preliminary poll conducted by Reuters yesterday showed that US crude inventories are expected to rise last week while distillate and gasoline inventories will decline.

The poll was conducted ahead of reports from the American Petroleum Institute industry group, scheduled for release at 20:30 GMT on Tuesday, and the Energy Information Administration, the statistical arm of the US Department of Energy, at 14:30 GMT on Wednesday.