Crude prices gain on geopolitical worries

Crude prices advanced Thursday as fears of a disruption in crude supplies in Middle East and Ukraine increased.

Market concerns over geopolitical tensions in the Middle East increased, after U.S. President Barack Obama pledged Wednesday night that he "will not hesitate to take action" against the Islamic State in Syria, as well as in Iraq.

Obama also said Thursday that the U.S. is joining the Europe Union in slapping more sanctions on Russia for its continued support of separatists in Ukraine.

Russia is a main producer of global energy, and more than 70 percent of Russian crude and gas exports to Europe pass through Ukraine. The uncertainties surrounding Ukraine presented a huge threat to the oil market.

On the economic front, the number of Americans who initially applied for jobless benefits last week rose to the highest level since late June, said the Labor Department. In the week ending Sept. 6, the advance figure for seasonally adjusted initial claims increased 11,000 to 315,000, higher than market expectations, according to the department.

Meanwhile, the four-week moving average, a smoother gauge, stood at 304,000, an increase of 750 from the previous week's revised average, the department added.

Light, sweet crude for October delivery moved up 1.16 dollars to settle at 92.83 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery gained 4 cents to close at 98.08 dollars a barrel.