Oil prices climbed after four consecutive days of declines, as traders assessed potential production risks in the Middle East against the backdrop of concerns about a global oversupply.

Brent crude edged closer to $75 per barrel after shedding nearly 7% over the previous four sessions, while West Texas Intermediate approached $71. Earlier in the week, both benchmarks had dropped following reports that Israel would refrain from targeting Iran’s oil facilities in retaliation for the Oct. 1 attack.

On Wednesday, Israel intensified its airstrikes on Lebanon and announced the killing of a senior Hezbollah commander in the south of the country, marking another escalation in its conflict with the Tehran-backed group. At the same time, an oil leak near a key terminal in Iran increased attention on the country's export infrastructure.

This month, oil prices have been highly volatile as worries over Middle East conflict—which supplies about one-third of global crude—were tempered by mounting bearish signals. The International Energy Agency (IEA) noted this week that rising production from non-OPEC countries and sluggish demand growth are expected to create a "sizable surplus" next year, assuming there are no significant disruptions in supply.

In the US, an industry group reported a 1.6 million barrel decline in crude stockpiles last week, potentially marking the first drop in three weeks if official data later on Thursday confirms it. Additionally, traders are closely monitoring a housing-policy briefing in China after previous fiscal-policy announcements sparked concerns about demand in the world's largest oil importer.

Paraphrasing text from "Bloomberg" all rights reserved by the original author.