Oil rises to seven-week high

Galtero Lara
Julio 12, 2019

Futures in Original York had been diminutive changed after settling above US$60 a barrel on Wednesday for the principle time since Might. Major producers from BP Plc to Chevron Corp. have evacuated crews from offshore installations due to the storm, which could grow into a hurricane this week.

"Powell cited trade uncertainties that surround economic growth as a potential reason to cut interest rates".

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher early Friday despite another report calling for a supply glut in 2020. U.S. President Donald Trump vowed Wednesday to impose more sanctions on Iran and accused it of violating the nuclear accord that he withdrew from a year ago. On Thursday, the markets rallied to their highest levels since May 28 and May 23, respectively, however, the lack of follow-through to the upside led to the formation of a pair of potentially bearish technical closing price reversal tops.

Tensions in West Asia worsened today after gunboats of the Iranian Revolutionary Guards asked a British oil tanker to stop in Iranian waters, but later withdrew following warning from a British warship warned, USA officials said.

Tensions have been high in the Middle East after attacks on tankers and the downing of a USA drone by Iran last month, following President Donald Trump's unilateral withdrawal from a multi-party agreement with Tehran to end its nuclear programme.

More news: Fed chairman hints at first interest rate cut in over a decade

Oil futures were especially strong, running up from $64.16 a barrel to $67.01 on ICE. Earlier in the session, they hit their highest since May 30 at $67.39, after ending Wednesday up 4.4%. The global benchmark crude traded at a $6.50 premium to WTI for the same month.

Oil firms shut more than 1 million barrels per day of oil production, 53% of Gulf of Mexico's output, as Tropical Storm Barry intensified on Thursday.

Data from the American Petroleum Institute (API) on Tuesday showed U.S. crude inventories fell by 8.1 million barrels in the week to July 5 to 461.4 million, compared with analyst expectations for a decrease of 3.1 million barrels. That compared with the median estimate in a Bloomberg survey for a 2.9 million barrel decline.

The situation in the Middle East remained tense.

According to the British government, three Iranian vessels tried to block the passage of a British ship run by BP through the Strait of Hormuz. That came after Iran's military vowed to retaliate against the U.K.'s seizure of a tanker loaded with Iran's crude off the coast of Gibraltar last week.

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