Oil closes higher, records highest levels in 9 months

Oil drilling rigs

Oil prices closed higher today, Aug. 9, as markets assessed the prospects for supply and demand as US inventories expanded more than expected. Escalating geopolitical tensions between Russia and Ukraine also affected the prices.

Ukrainian President Volodymyr Zelensky said his country would respond to Russia's closure of territorial waters, threatening Russian flows across the Black Sea. The comments come in the wake of a Ukrainian drone attack on an oil tanker over the weekend.

“Crude oil prices have also continued to edge higher as rising tension between Russia and Ukraine, prompts concern that Ukraine might target Russian infrastructure and disrupt supply in the Black Sea," Michael Hewson, Chief Market Analyst at CMC Markets, said in a note, according to Market Watch.

Meanwhile, the Energy Information Administration data showed that US oil inventories increased by 5.9 million barrels to 445.6 million barrels in the week ended Aug. 4. This was against expectations of an increase of 567,000 barrels.

Brent crude futures for October delivery closed up 1.6%, or $1.38, at $87.55 a barrel, after it recorded $87.65 during trading.

WTI crude for September delivery rose by 1.8%, or $1.48, to record $84.40 a barrel, after it touched $84.65 during the session.

Both benchmarks hit the highest levels since November 2022 during the session.