Oil nears five-month high amid Middle East tensions

Oil prices rose on Tuesday, with Brent crude hovering near its highest level in five months as traders factored in a geopolitical risk premium due to ongoing tensions in the Middle East.

Brent crude futures climbed 55 cents, or 0.50 percent, to $110.10 per barrel after reaching $110.70 in the previous session, the highest since May 20.

US West Texas Intermediate (WTI) November futures, which expire on Tuesday, gained 0.24 percent to $103.91 per barrel. The more actively traded December contract rose 39 cents, or 0.40 percent, to $98.93.

According to Reuters, ING analysts said in a note on Tuesday that "oil prices remain strongly supported, indicating the market is pricing in a significant risk premium given the volatility of the situation."

Ship tracking firm Kpler said in a note on Monday that reports indicated at least 18 vessels had been attacked over the past two weeks, keeping the risk premium unchanged.

In the United States, a preliminary Reuters poll on Monday showed that US crude oil inventories likely fell last week, along with stocks of petroleum products.