11.01.202408:57:00UTC+00Oil Prices Climb On Supply Concerns

Oil prices rallied on Thursday amid signs of an escalating conflict in the Middle East after another Israeli strike in Rafah.

Benchmark Brent crude futures jumped 1.6 percent to $77.99 a barrel, while WTI crude futures were up 1.6 percent at $72.53.

Israel bombarded the southern Gaza Strip overnight, as U.S. Secretary of State Antony Blinken prepared to travel to Egypt for more talks aimed at containing Israel's war against Hamas.

The dollar's weakness also helped traders shrug off data showing rising U.S. crude stockpiles.

Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. rose by 1.338 million barrels last week, as against forecasts for a decline of about 700,000 barrels.

Gasoline stocks increased 8 million barrels last week to 245 million barrels, while distillate stockpiles rose by 6.5 million barrels last week to 132.4 million barrels, the highest level since September 2021.