The Jack of the Pump runs on a location leased by Devon Energy Production Co. near Guthrie, Oklahoma.
Nick Oxford | REUTERS – Oil rose more than 3 percent to over $ 63 a barrel on Thursday after Iran dropped a US military dron, raising fears of a military confrontation between Tehran and Washington.
Oil also supported expectations that the US Federal Reserve could cut interest rates at its next meeting by boosting growth in the largest oil-using country in the world and a drop in US crude oil reserves.
Brent crude oil, the global benchmark, rose 1
The United States' crude intermediate in Western Texas grew by $ 1.45 to $ 55.21.
"This is a combination of factors," Petromatrix analyst Olivier Jacob said about rising prices. "You have more stock data, the Federal Reserve says it will lower prices and take off the plane."
The unmanned airplane was shot down in the international airspace over the Hormuz Strait from an Iranian "land-air" rocket, a US official said. The Iranian Revolutionary Guard said the dron flew over southern Iran.
Tensions are increasing in the Middle East, where more than 20% of world oil production lives, after attacks on two oil tankers near the Strait of Hormuz, which is also a place for oil supplies. Washington blamed Tehran for tanker attacks. Iran denied any role.
Concerns about a slowdown in economic growth and the trade dispute between the US and China have reduced oil in recent weeks. Brent reached the highest value in 2019 from $ 75 in April. Also, Thursday's higher fuel consumption was higher than the expected decline in crude oil reserves in the US and the prospect of continued supply constraints on OPEC and its allies.
After rising to nearly two-year highs, US crude oil stocks dropped 3.1 million barrels last week, compared with analysts' expectations of a 1.1 million barrel reduction, the Energy Information Administration said on Wednesday.
The Organization of Petroleum Exporting Countries and Allies, including Russia, agreed this week to meet on July 1 and 2, ending a month of disputes over the meeting.
The coalition, known as OPEC +, will discuss whether to extend the deal to cut output by 1.2 million barrels per day in 2019. The deal expires at the end of this month.
The impetus for an agreement seems to be building, as the United Arab Emirates Energy Minister said the prolongation of the deal was "logical and reasonable".