Global oil prices hovered near seven-month highs yesterday as rising geopolitical tensions between the United States and Iran supported the market, even as growing American crude inventories pointed to concerns about oversupply. Brent crude futures were trading around 71 dollars a barrel in London, up about half a percent on the day and close to their highest levels since late July.

West Texas Intermediate futures were near 65.8 dollars per barrel, gaining about 0.3 percent and holding close to levels last seen in early August. Both global benchmarks have risen nearly eight percent over the past month as traders factored in a higher risk premium linked to tensions in West Asia East. Markets are closely watching the possibility of confrontation between Washington and Tehran, which could disrupt crude supplies from the region.

Iran is the third-largest producer in the OPEC. However, fresh data from the American Petroleum Institute showed U.S. crude inventories rose by about 11.4 million barrels in the week to February 20, highlighting concerns that global supply may still exceed demand. Traders are now awaiting official stockpile figures from the U.S. Energy Information Administration for further direction on prices.