Brent crude futures were up $1.48, or 2.03%, at $74.29 by 1158 GMT. US West Texas Intermediate crude futures rose $1.53, or 2.23%, to $70.28.
Oil prices rose more than 2% on Thursday as Russia and Ukraine launched missiles at each other, overshadowing the impact of a larger-than-expected increase in US crude inventories. Brent crude futures were up $1.48, or 2.03%, at $74.29 by 1158 GMT. US West Texas Intermediate crude futures rose $1.53, or 2.23%, to $70.28.
Ukraine fired British cruise missiles into Russia on Wednesday, the latest Western weapon it has been allowed to use in this way, a day after it fired US missiles.
Russia responded Thursday morning, launching an intercontinental ballistic missile over Ukraine, the first time Moscow has used such a powerful, long-range missile during a war, Kiev’s air force said.
Russia has said the use of Western weapons to strike its territory far from the border would be a major escalation of the conflict. Kiev says to defend itself it must be able to strike Russian bases used to support Moscow’s offensive, which entered its 1,000th day this week.
“For oil, the risk is if Ukraine targets Russian energy infrastructure, while another risk is the uncertainty of how Russia responds to these attacks,” ING analysts said in a note.
China on Thursday announced policy measures to boost trade, including support for energy product imports, amid concerns over US President-elect Donald Trump’s threats to impose tariffs.
Meanwhile, OPEC+ could push back production increases again when they meet on Dec. 1 due to weak global oil demand, three OPEC+ sources familiar with the discussions said.
The producer group, which includes allies such as the Organization of Petroleum Exporting Countries and Russia, pumps about half of the world’s oil. It initially planned to gradually withdraw production cuts from late 2024 and through 2025.
However, the International Energy Agency (IEA) has said that even if OPEC+ cuts remain, oil supply will exceed demand in 2025.
U.S. crude inventories rose by 545,000 barrels to 430.3 million barrels in the week ended Nov. 15, beating analysts’ expectations.
Gasoline inventories rose more than expected last week, while distillate stockpiles posted a bigger-than-expected draw, according to Energy Information Administration data.