Oil rises on U.S.-EU trade talks, Red Sea shipping suspension

NEW YORK (Reuters) – Oil prices rose for the third consecutive day on Thursday after Saudi Arabia suspended oil shipments through the United States and the European Union Union eased.

Brent LCOc1 Future Pink 61 cents to settle at $ 74.54 a barrel, at 0.8 percent gain. The contract earlier touched $ 74.83 in barrel, July 16, 2013. U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 31 cents, settling at $ 69.61, a 0.5 percent gain.

After meeting European Commission President Jean-Claude Juncker at the White House on Wednesday, U.S. President Donald Trump agreed to quote from the European Union and the United States.

"Certainly it's positive for the economy and commodities," said John Kilduff, partner at Again Capital Management in New York.

Brent rose in post-close trading on Wednesday after Saudi Arabia said it was "just halting" oil shipments through the Red Sea shipping lane of Bab al-Mandeb after an attack by Yemen Iran-aligned Houthi movement.

Any move to the Bab al-Mandeb, which is between the Yemen and the Red Sea, would be possible to halt oil shipments through Egypt's Suez Cbad or the Red Sea oil pipeline. and Mediterranean.

An estimated 4.8 million barrels a day of crude oil and refined products flowed through the world in 2016 towards Europe, the United States and Asia, according to the U.S. Energy Information Administration.

Saudi Arabia additionally has the Petroline, also known as the East-West Pipeline, which mainly transports crude from fields clustered in the east to Yanbu for export. This could be attributed to a bottleneck caused by Bab al-Mandeb's closure.

Olivier Jakob from Petromatrix said in a note he remains to be seen in the United States.

"The pbadage is not as crucial as the Strait of Hormuz … but restricted flows through it would have an impact not just for crude but also for longer travel time," he said.

U.S. OIL SOURCES OF OIL SOURCES OF GASOLINE AND FATTY RESOURCE.

Traders said Thursday that inventories at the U.S. storage hub in Cushing, Oklahoma, have continued to fall. They were forecast to drop by 1.1 million barrels through Tuesday, said traders, citing energy information provider Genscape.