LONDON: Oil prices were broadly stable on Thursday as uncertainty around conflict in the Middle East and reports of North Korean troops ready to help Russia in Ukraine kept traders on edge ahead of the U.S. presidential election.
Brent crude futures were up 46 cents, or 0.6%, at $75.42 a barrel by 1318 GMT. U.S. West Texas Intermediate crude futures rose 39 cents, or 0.6%, to $71.16.
Oil prices have gained about 3% this week after shedding more than 7% last week on a perceived calming of Middle East tensions and concerns of oversupply and weak demand.
“The opposing forces of economic anxiety, loose oil balance and potential war-related supply disruptions will ensure that no clear oil price direction emerges in the immediate future whilst the risk remains skewed to the downside in the medium term,” said Tamas Varga of oil broker PVM.
On Wednesday the U.S. said for the first time that it had seen evidence North Korea has sent 3,000 troops to Russia for possible deployment in Ukraine, a move that could mark significant escalation in Russia’s war against its neighbour.
Oil rises as Middle East war rages
In the Middle East, an exchange of heavy fire between Israel and Hezbollah heightened supply concerns. Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.
Washington, meanwhile, continues to push for peace between Israel and Iran-backed groups Hezbollah and Hamas before the U.S. presidential election on Nov. 5, which could alter U.S. Middle East and oil policy.
“Trump is leading over (Kamala) Harris based on current data from betting markets and Trump has proposed making the U.S. a major oil supplier,” said OANDA senior market analyst Kelvin Wong, adding that such a move could depress prices.
While betting markets put Trump ahead, other polls show the result is too close to call.
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