Oil up on decline in US crude inventories

LONDON, July 11, 2019 – Oil prices rose on Thursday in Asia after data showed US crude inventories fell last week.

The Energy Information Administration (EIA) said crude oil inventories plummeted by 9.50 million barrels in the week to July 5. Forecasts predicted a stockpile draw of 3.08 million barrels, after a decline of 1.09 million barrels in the previous week.

Oil prices jumped as much 4.5% overnight immediately following the EIA report.

On Tuesday, the American Petroleum Institute report showed an 8.1 million barrel fall in inventories last week.

US Crude Oil WTI Futures last traded at $60.62 by 1:14 AM ET (05:14 GMT), up 0.3%. International Brent Oil Futures gained 0.2% to $67.17.

Also supporting oil markets was news that Iran tried to seize a British tanker in Persian Gulf. The oil tanker was crossing into the Strait of Hormuz area when Iranian boats approached it and demanded that the tanker change course and stop in nearby Iranian territorial waters, CNN reported.

Tensions have been high in the Middle East after some reported attacks on tankers, and the downing of a US drone by Iran last month. Tehran’s decision this week to enrich uranium beyond the levels it had committed to under the JCPOA nuclear agreement further escalated the tension.

US President Donald Trump has warned Tehran over the weekend to “be very careful” about the resumption of enrichment.

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