Oil prices edged up by 1% on Thursday, stretching gains over supply worries due to consequences resulting from the current Middle East turmoil, especially the conflict between Israel and Hamas.

Brent crude added 0.8%, to $78.86 a barrel meanwhile US WTI futures nudged up by 1% to $73.44 per barrel.

The Sharara oilfield in Libya, which has a daily production capacity of up to 300,000 bpd, had to halt production on Wednesday due to local protests. Often the focus of political demonstrations, the field is one of the biggest in Libya.

On Wednesday, both benchmarks increased by roughly 3%, closing the week higher than they had been in the previous five days. The American Petroleum Institute's report, which showed that crude stocks dropped by 7.4 million barrels—double the anticipated drawdown also buoyed oil prices.

Yesterday during an event in Iran honoring commander Qassem Soleimani, who was assassinated by a US drone in 2020, two explosions left about 100 people dead and numerous others injured. Iran promises retaliation.

Eye are on inventory data that is scheduled to release today from the US Energy Information Administration.