Brent crude holds near five-month high on Middle East tension

Oil prices rose on Tuesday, with Brent futures trading close to a five-month peak as investors built a geopolitical risk premium into prices. Brent gained 55 cents, or 0.50 per cent, to $110.10 a barrel, after touching $110.70 in the previous session, its highest level since May 20, according to The Express Tribune.

Saudi officials had yet to confirm Houthi claims of strikes on energy, airport and military sites, and Reuters could not verify them. Separately, a Houthi strike on a security training camp in Yemen's Shabwa province killed 58 people and injured more than 200, according to the report. ING analysts said the market was building in a notable geopolitical premium, while Kpler pointed to at least 18 vessels reportedly hit over two weeks.

A preliminary Reuters poll indicated that US crude inventories probably declined last week. Meanwhile, the November WTI contract rose 0.24 per cent to $103.91, and the more active December contract gained 0.40 per cent to $98.93.