Oil prices rebound as Middle East tensions escalate

Oil drilling rigs

Oil prices rose today, April 12, as the Middle East tension escalation raised the risk of supply disruptions from the oil-producing region, though the market is set for a weekly loss on expectations of fewer US interest rate cuts this year.

Brent crude futures increased 0.9%, or $0.79, to $90.53 a barrel, at 9:00 GMT.

Similarly, futures prices for US West Texas Intermediate (WTI) crude rose 1.1%, or $0.92, to $85.94 per barrel.

Both contracts are heading for a weekly loss, falling almost 1%.

ING analysts said they expect oil's rally to retreat unless there is a further escalation in the Middle East or supply disruptions.

"We maintain our forecast for Brent to average $87 a barrel over the second quarter of this year," the ING analysts added.