Oil prices rise as a result of the storm in the Gulf of Mexico and tensions in the Middle East

SEOUL (Reuters) – Oil prices rose on Friday as US producers in the Gulf of Mexico cut their production by more than half in the face of the tropical storm and lingering tensions in the Middle East.

The Brent LCOc1 crude futures price was up 37 cents, or 0.6%, to $ 66.89 per barrel at 11.15 GMT. The international benchmark stood at $ 67.52 a barrel, down 0.7% Thursday after reaching its highest level since May 30th.

Futures in the CLc1 futures market for West Texas Intermediate (WTI) crude in the United States rose 34 cents, or 0.6%, to $ 60.54 per barrel. The US benchmark closed down 0.38% on Thursday, after reaching its highest level since May 23 at $ 60.94.

Thursday, oil companies in the Gulf of Mexico had reduced their production by more than 1 million barrels per day (b / d), or 53% of production in the region, because of Tropical Storm Barry.

It was predicted that the storm would become a Category 1 hurricane with winds of at least 74 miles to the hour (119 km to the hour).

"Brent crude has spread its gains, storms in the Gulf of Mexico have interrupted oil production and US oil stocks have continued to decline more than expected," ANZ said in a note.

Crude oil inventories in the United States declined for four consecutive weeks. US crude oil inventories fell by 9.5 million barrels in the week to July 5, the Energy Information Administration (EIA) announced, more than triple the expected 3.1 million barrels by badysts.

At the same time, Iran's alleged attempt to block a British-owned tanker has exacerbated tensions in the Middle East following attacks on oil tankers and the destruction of the US drone by Iran. June.

"If a large-scale military conflict remains the least likely scenario, the sharp increases in the cost of insurance will allow for the transportation of the most expensive crude and will allow new routes to be explored, delaying arrivals of gross, "said Edward Moya, Senior Market Analyst at OANDA. At New York.

However, the oil demand outlook of the Organization of Petroleum Exporting Countries reduced to 2020 limited price gains. OPEC said the world would need 29.27 million bpd of crude from its 14 members by 2020, a decrease of 1.34 million bpd this year.