Oil prices wary as tensions in Middle East escalate

Oil trading was cautious on Monday in the midst of tensions in the Middle East and rising oil output from US.

Brent crude futures were at $63.55 per barrel at 0614 GMT, up 3 cents from their last close. 

U.S. West Texas Intermediate (WTI) crude was at $56.79 per barrel, up 5 cents.

Oil analysts are of opinion that the current oil prices are supported by the declining inventories in OPEC and Russian nations. With the decrease in inventories and outputs, the oil markets are poised to stay at these levels for quite some while. However, the rising tensions in the Middle East may have prompted worries of supplies from the region and proxy wars between Saudi and Iran escalates.

Other than that, the rising rig count of Shale gas explorations in the US and the increasing output has put the market into a multidimensional price scenario with prices for oil going anywhere if discipline from OPEC countries takes a hit.