Oil prices rise 5% – statement


Oil prices rose more than 5 percent on Thursday after Iran abandoned a US aircraft march, raising fears of a military clash between Tehran and Washington.

Oil prices also held up expectations that the Federal Reserve will cut interest rates at its next meeting to spur the growth of the world's largest oil consumer and a drop in US oil stocks.

Brent crude closed the trading session higher from $ 2.63, or 4.3 percent, to $ 64.45 a barrel.

WTI's benchmark futures rose $ 2.89, or 5.4%, to close at $ 56.65 a barrel.

The difference between Brent and US oil prices has dropped to the lowest level since April. Bob Goger, the futures manager at Mizuho Bank in New York, said the move came as US oil rose faster than Brent because of the positive impact of potential Federal Reserve policy.

Tensions in the Middle East, which drive more than 20 percent of world oil production, are rising after two attacks on two carriers near the Strait of Hormuz, a stumbling block for the supply of crude oil. Washington blamed Tehran for the attacks.

Concern over the slowing economic growth, a trade dispute, and the United States and China have pressed oil prices in recent weeks. Brent hit its highest level in 2019, at $ 75 a barrel in April.

OPEC producers will maintain their oil output in July within target levels, although the current OPEC cut-off agreement will expire at the end of June, OPEC sources said, signaling that Gulf exporters were reluctant to increase supply.



Source link