Investors monitor developments in IsraelHamas conflict
US crude inventories up more than expected EIA
Macroeconomic concerns continue to pressure oil

SINGAPORE, Oct 26 Reuters Oil prices fell on Thursday after a rise in U.S. crude stockpiles and a climb in the dollar index, giving up some ground gained a day earlier when prices jumped on Middle East tensions.

Brent crude futures declined by 67 cents, or 0.7, to 89.46 a barrel at 0630 GMT. U.S. West Texas Intermediate crude futures eased 71 cents, or 0.8, to 84.68 a barrel.

The benchmark oil contracts had settled nearly 2 higher on Wednesday but fell back after the Wall Street Journal reported that Israel has agreed to delay an expected invasion of Gaza for now.

The movements of oil markets are primarily involved with the HamasIsrael war, said Tina Teng, markets analyst at CMC.

Investors were also digesting a rise in U.S. crude inventories, indicative of weak demand.

U.S. crude inventories climbed by 1.4 million barrels in the latest week to 421.1 million barrels, according to the Energy Information Administration, exceeding a 240,000barrel gain expected by analysts from a Reuters poll.

Markets remain volatile as Middle East jitters ebb and flow, but underlying fundamentals are seasonally weaker than expected with product demand in the U.S. surprisingly weak, Citi analysts said on Thursday.

Refinery crude runs in the U.S. fell by 207,000 barrels per day, while refinery utilisation rates also edged lower by…