Oil inches up as war jitters outweigh surprise build in U.S. crude stocks

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Oil inches up as war jitters outweigh surprise build in U.S. crude stocks

- Oil rose slightly in early trade on Wednesday as concern over escalating conflict in Europe and the Middle East offset demand worries following an unexpected build infutures for August delivery rose 6 cents to $85.39 a barrel by 0016 GMT. U.S. West Texas Intermediate crude for June was up 10 cents to $81.67 per barrel.

In the Middle East, meanwhile, Israeli Foreign Minister Israel Katz warned of a nearing"all out war" with Lebanon's Hezbollah, even as the U.S. attempted to avoid a broader conflict between Israel and Iran-backed Hezbollah. Keeping oil prices from rising further, U.S. crude stocks rose by 2.264 million barrels in the week ended June 14, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts polled by Reuters had expected a 2.2 million barrel draw in crude stocks.

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