TOKYO — Oil prices edged higher on Monday on increasing concerns of potential supply disruptions from the Middle East producing region after Israel stepped up attacks on Iranian-backed forces. Brent crude futures LCOc1 for November delivery increased 16 cents, or 0.22%, to $72.
14 a barrel as of 0043 GMT. That contract expires on Monday and the more-active contract for December delivery LCOc2 gained 10 cents, or 0.14%, to $71.
64. U.S.
West Texas Intermediate crude futures CLc1 added 8 cents, or 0.12%, to $68.26 a barrel.
Last week, Brent fell around 3%, while WTI fell by around 5% as demand worries increased after fiscal stimulus from China, the world’s second-biggest economy and the top oil importer, failed to reassure market confidence. However, prices on Monday were supported by the possibility of a widening Middle East conflict involving Iran, a key producer and member of the Organization of the Petroleum Exporting Countries (OPEC), after Israel increased its attacks on the militant groups Hezbollah and the Houthi that Iran backs . “The recent escalation of attacks in the Middle East is increasing the likelihood of Iran being directly dragged into the conflict, putting a significant risk around supply disruptions at the OPEC producer,” ANZ Research said in a note.
Israel said it bombed Houthi targets in Yemen on Sunday, expanding its confrontation with Iran’s allies two days after killing Hezbollah leader Sayyed Hassan Nasrallah in an escalating conflict in Leban.