Oil prices rose on Thursday, rising in line with other perceived risky assets, hinting that the Federal Reserve could cut interest rates in the coming months and on the news that Iran shot down a US military drone.
Data Wednesday that showed falling US supplies and a firmer date for an organization of the petroleum exporting country to review its promised production limits was also price-supportive.
U.S. reference West Texas Intermediate crude for august delivery
CLQ19, + 3.28%
rose $ 1[ads1].53, or nearly 2.8%, to $ 55.50 per barrel while the contract in July
CLN19, + 3.24%
increased $ 1.52 or 2.8% to $ 55.28 per barrel.
"A crucial move higher today has now broken over the resistance of $ 54.85," said analyst Richard Perry at Hantec Markets. "This gives good results for the near future. Pleased to support the market now, it would be close to $ 54.85 … meaning recovery against $ 59.10 over time."
International benchmark August Brent crude
BRNQ19, + 2.65%
climbed $ 1.38, or 2.2%, to $ 63.20 per barrel at ICE Futures Europe.
Meanwhile, the tension between Iran and the United States, Iran's revolutionary guard, was down an American drone. The United States has blamed Iran for attacks on ships near the Oman Gulf recently, a charge the country denies.
The attacks come against the backdrop of increased tensions between the US and Iran after President Donald Trump's decision to withdraw from the Tehran nuclear deal with world powers a year ago. The White House said separately that it was aware of reports of rocket attacks in Saudi Arabia in the midst of a campaign aimed at the kingdom of Yemeni Iranian Allied Houthi rebels.
"Iran shows that they can still mess up oil markets and downing an American drone is the last escalation," said Edward Moya, senior market analyst at Oanda. "Oil prices are out of the bear market and seem well supported here."
Global Stock Markets climbed despite geopolitical ripples, with US stock exchange futures pointing to a stronger season of gains in Asia and Europe, the US Federal Open Market Committee kept interest rates stable as expected on Wednesday, but took away the language that promises "patience" about change, which markets hinted that the bank was ready to ease borrowing costs if warranted.
Meanwhile, the Energy Information Administration reported on Wednesday that US commodity supplies fell by 3.1 million barrels a week ending June 14 after just two weeks of gains There were more than 2 million barrels expected from analysts asked by S & P Global Platts.
Also to help ox It was news that OPEC and its allies, informally referred to as OPEC-plus, will hold meetings on July 1, -2. The session was originally scheduled for June 25 to June 26. The date resolution ended weeks of speculation about a moving target for when the meeting is to be held, as Russia's position on continued production limitation remains unclear.
"OPEC and Allies were finally able to settle on a date to meet and the three largest producers (Saudi Arabia, Iraq and UAE) are set to expand production cuts for the rest of the year," said Moya. 19659002] Among the other energy contracts, July petrol
RBN19, + 2.00%
increased 2% to $ 1,770 per gallon. July heat oil
HON19, + 2.52%
increased 1.9% to $ 1,864 per gallon. July natural gas
lost inched up 0.4% to $ 2.285 per million British thermal units.