Oil prices increase as Middle East tensions rise

Oil prices ticked higher in Asian markets over rising tensions in the Middle East against a build in US crude stockpiles that pushed oil benchmarks down about 80 cents in previous session.

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US West Texas Intermediate crude futures gained 20 cents, or 0.28 per cent, to reach $71.57 a barrel by 0202 GMT. Benchmark Brent crude oil futures rose 21 cents, or 0.27 per cent, to $77.01 a barrel.

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US crude inventories increased by 1.3 million barrels in the week ended on January 5 to 432.4 million barrels, the EIA said on Wednesday, against analyst expectations for a 700,000-barrel draw.

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The analysts expect to see prices around the $67-$77 range in the near term, IG analysts said.

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On Wednesday, Yemen-based Houthis mounted their largest attack yet on commercial shipping lanes in the Red Sea.

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The US and Britain hinted they would take further measures if the attacks continued, and the UN Security Council passed a resolution demanding an immediate end to the strikes.

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Israeli strikes in southern and central Gaza also intensified on Wednesday.

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China's customs administration will release December trade data on Friday, giving a full-year picture of overall demand in the world's largest oil buyer.

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Analysts expect the data to show that China's goods imports rose 0.3 per cent last month, after dropping 0.6 per cent in November.

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