ANKARA, Feb 8 — Oil prices increased today over Israel’s decision to reject the ceasefire offer from Hamas and resume attacks on the Gaza Strip, while a weaker US dollar and an expected build in US crude oil stocks limited further price rises, reported Anadolu.
The international benchmark crude Brent traded at US$79.59 (RM379) per barrel at 10.24 am local time (0724 GMT), a 0.48 per cent rise from the closing price of US$79.21 a barrel in the previous trading session yesterday.
The American benchmark, West Texas Intermediate (WTI), traded at the same time at US$74.19 per barrel, up 0.45 per cent from yesterday’s close of US$73.86 per barrel.
Oil prices spiked after Prime Minister Benjamin Netanyahu vowed to continue attacks on the Gaza Strip until achieving a “crushing victory” against Hamas.
Meanwhile, the falling value of the US dollar also supported dollar-indexed oil prices, with the greenback falling 0.03 per cent to 103.887 today.
If the dollar depreciates against other currencies, dollar-indexed crude oil becomes cheaper for holders of other currencies and exerts upward pressure on prices.
However, data released by the Energy Information Administration (EIA) yesterday suggested an increase in US commercial crude oil inventories, limiting further price increases.
US inventories rose by around 5.5 million barrels to 427.4 million barrels, compared to the market expectation of an increase of around 674,000 barrels. — Bernama-Anadolu
