Brent futures rose above US$90 a barrel after closing 0.8% lower in the previous session. West Texas Intermediate climbed towards US$86.

The US believes an attack on Israel is imminent in response to a strike on Iran’s diplomatic compound in Syria last week. The Wall Street Journal reported Israel is preparing for an assault in the next two days, citing a person familiar with the matter.

Escalating geopolitical tensions including Russian attacks on Ukrainian energy infrastructure have spurred bullish activity in the oil options market.

There has been elevated buying of call options — which profit when prices rise — in recent days, as implied volatility gains. Call options on Brent are still trading at a premium over the opposite put options.

Crude is on track for a weekly loss but Brent is still around 17% higher this year, in part due to Opec+ supply cuts.

Opec maintained its robust outlook for global oil demand growth for 2024 in a monthly report on Thursday, as top traders and Wall Street banks strike a more bullish tone on prices.

The IEA will provide a snapshot of the market later today.