08:54 AM EDT, 04/05/2024 (MT Newswires) -- Oil prices edged higher early on Friday, rising to a fresh five-month high as supplies lag demand wuith OPEC+ cuts continuing, while geopolitical risk is rising on the threat of a wider Middle East war and the United States added far more new jobs than expected last month.

West Texas Intermediate crude oil for May delivery was last seen up US$0.01 to US$86.60 per barrel, while June Brent crude, the global benchmark, was up C$0.19 to US$90.84.

Oil's rise to the highest since late October comes as OPEC+ this week left its 2.2-million barrels per day of voluntary production cuts in place as the group looks to winnow global inventories to support high prices. The cartel will review whether to extend the cuts, due to expire at the end of the second quarter, at a June ministerial meeting.

Geopolitical worries are also on the rise, as Iran vowed to retaliate against Israel's Monday strike to Iran's embassy in Syria, which killed senior members of its Islamic Revolutionary Guard Corps. The strike, which Iran blames on Israel and the United States, raises fears of a wider Middle East war which could disrupt oil production from the Persian Gulf region as Israel continues its devastating war in Gaza as it looks to wipe out the Hamas militant group.

"Crude oil futures meanwhile reached an October high with Brent trading above $91 as the conflict in the Middle East showed signs of escalating at a time where demand remains robust, and supply is being kept tight by OPEC+," Saxo Bank noted.

A hot US economy is also supporting prices, even as it raises concern the Federal Reserve will keep interest rates at 23-year highs and not cut rates as expected. The United States added 303,000 new jobs last month, more than half again above the consensus analyst estimate for a rise of 200,000 jobs, according to Marketwatch.