Oil prices up on Russia-Ukraine tension, US inventory build caps gain

Oil prices increased on Thursday amid Moscow-Kyiv tensions following Ukraine’s strikes on Russia, though a larger-than-expected rise in US crude inventories data limited the upward trend in prices.

The international oil benchmark of Brent crude rose 0.38% to $73.08 per barrel at 9.41 a.m. local time (0641 GMT), up from the previous session’s close of $72.81.

The US benchmark West Texas Intermediate also increased by 0.44% to $69.05 per barrel, compared to $68.75 at the prior session’s close.

Ukraine has fired UK-made Storm Shadow missiles into Russia for the first time, according to multiple British media reports on Wednesday.

The attack comes a day after Ukraine’s first use of US long-range ATACMS missiles on Russian soil, following authorization from US President Joe Biden.

The Guardian reported earlier this week that the UK would soon approve the use of Storm Shadow missiles to target Russian territory.

Earlier, UK Prime Minister Sir Keir Starmer said the international community had to “double down” in its support for Ukraine.

Russian President Vladimir Putin signed on Tuesday a decree approving Russia’s updated nuclear doctrine, nearly two months after he proposed the changes.

Meanwhile, data from the Energy Information Administration (EIA) released late Wednesday revealed a 0.1% increase in US commercial crude oil inventories for the week ending Nov. 15.

Inventories rose by around 500,000 barrels to 430.3 million barrels, higher than the market prediction of a 400,000-barrel rise.

Over the same period, gasoline inventories rose by around 2.1 million barrels to 208.9 million barrels.

The higher-than-expected inventory gains signaled weakening demand in the country and limited the upward trend in prices.

• ATACMS
• US benchmark West Texas Intermediate