Thursday's oil price rose in line with other risky assets after the Federal Reserve cut interest rates in the coming months and the news was that Iran has shot down a US military drone.
Wednesday's data, which showed a decline in US shipments and a firmer date for a meeting of the oil-exporting countries' organization to review the promised production limits, also supported prices.
United States. Benchmark West Texas Intermediate crude for delivery in August
CLQ19, + 3.54%
rose $ 1
CLN19, + 3.50%
rose $ 1.52 or 2.8% to $ 55.28 a barrel.
"A sizeable $ 54.85 contraction has come today," said Richard Perry, an analyst at Hantec Markets. "This is a good sign of the short-term prospects. If we support the market now, a closing price above $ 54.85 in due course would mean a $ 59.10 recovery.
International benchmark August Brent crude oil
BRNQ19, + 2.88%
climbed ICE Futures Europe by $ 1.38 or 2.2% to $ 63.20 a barrel.
Faced with mounting tensions between Iran and the US, the Iranian Revolutionary Guard fired a US drone on Thursday. The US has recently blamed Iran for attacks on ships near the Gulf of Oman, which denies the country.
The attacks take place against a background of heightened tensions between the US and Iran after President Donald Trump decided to withdraw from Tehran's nuclear deal with world powers a year ago. The White House reported separately that it had received reports of a rocket attack on Saudi Arabia during a campaign against the kingdom of the Iranian-allied Houthi rebels in Yemen.
"Iran shows that it is still able to rattle the oil markets and the decline of a US drone is the last escalation," said Edward Moya, Senior Market Analyst at Oanda. "Oil prices are outside the bear market area and seem to be well supported."
Global equity markets climbed despite the geopolitical waves, and US stock futures pointed to a stronger session after gains in Asia and Europe. As expected, the US Open Market Committee held interest rates steady on Wednesday, but declined to be "patient" for change. These markets indicated that the bank was ready to cut borrowing costs if warranted.
Meanwhile, the Energy Information Administration reported Wednesday that US crude oil inventories fell by 3.1 million barrels in the week ended June 14 after two consecutive weeks. This was more than the expected decline of 2 million barrels by analysts surveyed by S & P Global Platts.
Helping the cops was also the message that OPEC and its allies, known informally as OPEC-plus, will hold meetings on July 1 -2. The meeting was originally scheduled for June 25-26. The date resolution ended weeks of speculation about a moving target for holding the meeting, as Russia's position on continued production restriction remains unclear.
"OPEC and its allies have finally agreed to meet with the top three producers (Saudi Arabia, Iraq and the United Arab Emirates) to extend production cuts for the remainder of the year," Moya said.
Among the other energy contracts was July gasoline
RBN19, + 2.21%
increased 2% to $ 1,770 a gallon. July heating oil
HON19, + 2.71%
increased 1.9% to $ 1,864 a gallon. July natural gas
NGN19, + 0.04%
lost 0.4% to $ 2.285 per million British thermal units.