Oil rises 2% on US crude storage draw

Oil prices climbed about 2 per cent to a two-week high on Wednesday, October 18, on a bigger-than-expected US storage draw and as rising tensions in the Middle East threaten to disrupt oil supplies from the region, with Iran calling for an oil embargo on Israel. Traders expect that US President Joe Biden’s visit to the Middle East is likely to involve balancing support for Israel and rally Arab states to help prevent a regional conflict.

Brent futures rose $1.46, or 1.6 per cent, to $91.36 a barrel, while US West Texas Intermediate (WTI) crude rose $1.45, or 1.7 per cent, to $88.11. This put Brent on track for its highest close since September 29 and WTI on track for its highest close since October 3. Earlier in the session both benchmarks rose more than $3 a barrel, according to news agency Reuters.

Union Jack Oil plc (LON:UJO) is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector.

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