Oil on the rise again

Oil settled after rising on Wednesday on signs that Israel would resume its ground offensive in Gaza, reigniting concerns that the conflict could escalate and threaten energy supplies. The global benchmark Brent crude traded around $90 a barrel after rising more than 2% in the previous session, while U.S. crude remained above $85. Israeli Prime Minister Benjamin Netanyahu said an invasion was underway, reigniting a war premium in oil futures that had been falling for days. The Middle East, which accounts for about a third of the world’s crude, faces major threats including U.S. moves to restrict Iranian exports and disruptions to shipping. The widely anticipated ground offensive was delayed to allow the U.S. to deploy air defenses in the area, according to the Wall Street Journal. Meanwhile, French President Emmanuel Macron said during a visit to the region that a major ground operation would be a mistake. “We think oil prices could rise as markets adjust to the possibility of escalation, and U.S. crude is likely to trade around $90 a barrel in the near term,” said Han Zhong Liang, investment strategist at Standard Chartered. Outside the Middle East, U.S. domestic inventories rose by 1.37 million barrels last week, according to Energy Information Administration data. Inventories at the Cushing, Oklahoma, storage hub rose by 213,000 barrels. Physical oil markets around the world are also seeing falling prices as profits from fuels such as gasoline shrink ahead of the winter season.