Oil prices ticked up during trade on Thursday, after rising a dollar a barrel in the prior session, as investors braced for a worsening of the Middle East crisis, potentially involving Iran, the third-largest oil producer in OPEC, APA reports citing Reuters.
Brent crude futures was up 5 cents to $90.53 a barrel at 0632 GMT, while U.S. West Texas Intermediate crude futures gained 4 cents at $86.25 a barrel.
"Prices remain sensitive to geopolitical developments in the Middle East, with market participants pricing for the risks of supply disruptions if tensions were to drag for longer," said Yeap Jun Rong, market strategist at IG.
"This aids to offset some risk-off sentiments overnight, as markets recalibrate their rate expectations to price out a June rate cut and for rates to be kept high for longer until September," added Yeap, referring to U.S. interest rates.
Higher-for-longer rates could dampen economic growth and suppress demand for oil.
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