Investing.com - Brent crude futures saw a slight increase in early Thursday trading as tensions escalated in Gaza, while U.S. crude futures took a dip in anticipation of a potential surge in oil inventories.
Brent crude futures for August delivery rose by 8 cents to $85.15 a barrel by 0008 GMT. In contrast, U.S. West Texas Intermediate (WTI) crude for June delivery fell by 27 cents, or 0.3%, to $81.30 per barrel.
Trading activity remained subdued due to the Juneteenth federal holiday in the US.
The conflict in Gaza escalated as Israeli forces, supported by tanks, warplanes, and drones, advanced further into the city of Rafah, resulting in eight casualties, according to residents and Palestinian medical sources. This escalating conflict in the Middle East is bolstering oil prices, as a broader conflict could potentially disrupt the region's oil supply.
Meanwhile, WTI crude experienced a decrease ahead of the delayed U.S. government oil inventories report, which is due to be released by the Energy Information Administration at 11 a.m. EDT (1500 GMT) on Thursday.
A report released on Tuesday indicated that U.S. crude stocks rose by 2.264 million barrels in the week ending June 14, according to figures from the American Petroleum Institute.