By: AGBI

Brent crude futures  climbed 44 cents, or 0.6 percent, to $71.86 a barrel by 00:25 GMT, while US West Texas Intermediate crude was at $67.83 a barrel, up 45 cents, or 0.7 percent.

Both contracts tumbled 6 percent on Monday, hitting their lowest since October 1, after Israel’s retaliatory strike on Iran at the weekend bypassed Tehran’s oil infrastructure.

The US on Monday said it was seeking up to three million barrels of oil for the SPR for delivery through May next year, a purchase that would leave the government with little money to buy more until lawmakers approve more funds.

“While outlook for the Middle East situation remains alarming, the market is expecting a temporary lull in retaliatory strikes between Israel and Iran,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

“The US plan to refill the SPR provided some support to the market,” he said, but predicted a downward trend ahead as peak winter kerosene demand season in the Northern Hemisphere was still some way off while demand in China remained sluggish.

On Saturday, scores of Israeli jets completed three waves of strikes against missile factories and other sites near Tehran and in western Iran, the latest exchange between the Middle Eastern rivals.

The attacks were more tailored toward military targets, easing fears that Israel might attack Iran’s nuclear facilities or oil infrastructure.

Tensions remain high, however, as Iranian foreign ministry spokesperson Esmaeil Baghaei said on Monday that Iran will “use all available tools” to respond to Israel’s weekend attack.

The US warned Iran at the United Nations Security Council of “severe consequences” if it undertakes any further aggressive acts against Israel or US personnel in the Middle East.

In the US, crude oil and gasoline stockpiles likely rose last week, while distillate inventories were seen down, a preliminary Reuters poll showed on Monday.

The American Petroleum Institute industry group is scheduled to release a weekly report on Tuesday and the Energy Information Administration, the statistical arm of the US Department of Energy, will issue one on Wednesday.