Oil prices hovered near seven-month highs on Wednesday as the threat of military conflict ?between the U.S. and Iran ?that could disrupt supply continued ?to worry investors as talks between the parties are set for Thursday.
Brent futures were up 33 cents, or 0.5%, at $71.10 U.S. per barrel. WTI futures rose 22 cents, or 0.3%, to $65.84.
Brent prices reached their ?highest since ?July 31 on Friday, while WTI hit its highest since ?August 4 on Monday, and both contracts have held near there as the U.S. has positioned military forces in the Middle East to compel Iran to negotiate an end to its nuclear and ballistic missile programme.
An extended conflict could disrupt supplies ?from Iran, the third-biggest crude producer in the Organization of the Petroleum Exporting Countries, and other countries in the key Middle East producing region.
Amid the heightened tensions, Iran and China have accelerated talks to purchase Chinese anti-ship cruise missiles, according to ?Reuters sources, which could target the U.S. naval forces that have assembled near the Iranian ?coast.
According to market sources, the American Petroleum Institute late on Tuesday reported a massive increase in U.S. oil stockpiles of 11.43 million barrels in the week ended February 20.
Official U.S. ?oil inventory reports from the Energy Information Administration are due later on Wednesday.
