Oil prices up more than one percent in early Asian trade on Thursday

Oil prices were up more than one percent in early Asian trade on Thursday off the back of persistent worries about supplies because of the Middle East conflict.

At around 0030 GMT West Texas Intermediate, having closed barely changed on Wednesday at $74.66 per barrel, was up 1.45 percent at $75.74 per barrel after climbing almost two percent at the open, reports BSS.

Brent North Sea Crude, which ended the previous day flat at $81.40 per barrel, was not being traded.

But following days of market declines, Asian stocks rose in early trade Thursday.

South Korea’s benchmark Kospi rebounded more than 11 percent, after it plunged more than 12 percent a day earlier, and Japan’s Nikkei index also lifted more than four percent, following an overnight rally on Wall Street.

“While we can sketch out any number of probability trees, ranging from open-ended escalation to a contained outcome, the reality is that we are still trading headline-to-headline and intel drop-to-intel drop,” said Stephen Innes of SPI Asset Management.

The conflict between the United States and Iran that began on Saturday has effectively closed shipping through the Strait of Hormuz.

A fifth of the world’s seaborne crude oil travels through the waterway as well as considerable volumes of liquefied natural gas (LNG).

President Donald Trump sought to allay concerns about oil supplies being choked off, saying Tuesday that the US Navy was ready to escort oil tankers and that the United States would offer shippers insurance.

The Omani navy rescued on Wednesday 24 crew members of a Malta-flagged container ship struck by missiles while transiting the strait, state media said.

It was the fourth reported attack in regional waters within 24 hours, after projectiles struck or landed near three other vessels off the Emirati and Omani coasts.

Iran’s Revolutionary Guards said on Wednesday they had “complete control” over the vital waterway.

US equities finished solidly higher on Wednesday, with the S&P 500 up 0.8 percent, and European markets also gained ground.