Oil extends gains on geopolitical tensions; Brent crosses $82

Oil drilling rigs

Oil prices rose for a fifth straight session today, Aug. 12, amid fears of risks to supply in the Middle East and as concerns abated regarding a possible economic recession in the US.

Brent crude futures for October delivery rose by 3.30%, or $2.64, to close at $82.30 a barrel, marking the highest level since July 18 session ($83.93).

WTI crude for September delivery gained 4.2%, or $3.22, to record $80.06 per barrel, the highest since July 18 ($81.30).

This came despite OPEC lowering its forecast for oil demand growth this year, with the August report showing the expected demand to grow by 2.11 million barrels per day to 104.3 million barrels per day, down 135,000 barrels per day from the July estimate, citing challenges in China's economy.

Axios reported that Israeli intelligence expects an Iranian response this week to the assassination it carried out in Tehran. Meanwhile, the US is sending a guided-missile submarine and speeding up the arrival of an additional aircraft carrier to the Middle East, the Wall Street Journal reported.