NY oil prices rise on plunging U.S. crude inventories, concerns in the Middle East

New York oil prices rose more than 1% in the wake of Israel's expansion of the frontline, hitting key facilities in the pro-Iran Yemeni rebel Houthi, amid a larger-than-market drop in U.S. crude oil inventories.

On the New York Mercantile Exchange, West Texas Intermediate for February delivery closed at $70.60 a barrel, up $0.98 and 1.41% from the previous session, the highest since the 16th.

Brent crude oil for February delivery, which is subject to international market comparisons, closed at $74.17 a barrel, up $0.91 and 1.24% from the previous session.

Weekly U.S. crude oil inventories, released by the U.S. Energy Information Administration, fell by 4.237 million barrels from the previous week, well above market expectations of 2 million barrels.

In the meantime, Israel bombed airports and power generation facilities in the Emen capital, Sanaa, and military infrastructure on the west coast, which led to "traders' panic buying," the Sevens report explained.