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Oil costs rise more than 1% amid concerns on Mideast tensions

Oil rates climbed by more than 1% on Thursday, almost reversing previous session's losses, as Middle East tensions came back into focus ahead of the U.S. election despite a mixed bag of U.S. fuel inventories.

Brent crude futures increased 95 cents, or 1.27% to $ 75.91 at 0302 GMT, while U.S. West Texas Intermediate crude futures climbed $1, or 1.41%, to $71.77 as an exchange of

heavy fire

between Israel and Hezbollah continued to fret markets about supply.

Oil prices have gotten almost 4% up until now today, assisting trim last week's losses of than 7% on fret about Chinese demand and relieving issues about possible disturbances caused by battling in the Middle East.

The bumpy play in oil prices is a mix of technical response to uncertainty ahead, said Priyanka Sachdeva, a senior market analyst at Phillip Nova.

Amid lack for supporting catalyst and with aching beliefs all over oil markets, oil bulls jumping at any additional headline of escalating dispute in Middle East, looks well justified, she included.

Israel introduced strikes on Syrian capital Damascus early on Thursday, Syrian state media said, the most recent such attack amidst the war in Gaza.

This followed earlier Israeli strikes on Beirut's southern residential areas on Wednesday and after Hezbollah said it fired accuracy guided missiles for the very first time at Israeli targets.

The magnifying exchanges of fire come as Washington makes a final major push for peace between Israel and Iran-backed groups Hezbollah and Hamas before the Nov. 5 U.S. governmental election that might alter U.S. policy in the Middle East.

The present volatility ahead of an important week of U.S. Election followed with Fed's policy decision is guaranteeing enough traction to cause wilder changes, even though supplies stay ample, said Phillip Nova's Sachdeva.

On the other hand, U.S. unrefined stocks increased by 5.5 million barrels recently, according to the U.S. Energy Details Administration on Wednesday, compared with experts' expectations in a Reuters survey for a 270,000-barrel rise.

Despite the stockpile accumulation, indicated need still rose, stated ANZ experts in a client note.

Likewise on the oil need front, support originated from stronger need for extracts, according to JP Morgan experts in a. customer note, highlighting strong travel need in Asia and. constant drawdowns in extract stocks in several major. markets.

(source: Reuters)