Oil prices win with falling US stocks and tensions in the Middle East

TOKYO (Reuters) – Oil prices rose on Wednesday, extending gains after an industry group announced a much larger-than-expected drop in US inventories, as the US Navy announced it had shot down a second Iranian drone. last week.

Brent crude futures, LCoC1, rose 24 cents, or 0.4 percent, to $ 64.07 per barrel at 00:49 GMT, after rising almost 1 percent on Tuesday.

US West Texas Intermediate CLc1 crude rose 22 cents, or 0.4%, a barrel, after increasing about 1% in the previous session.

US stocks of crude oil fell more than expected during the week of July 19, down 11 million barrels to $ 449 million, announced Tuesday the American Petroleum Institute trade group.

This is comparable to badysts' expectations of a decrease of 4 million barrels.

Crude stocks in Cushing, Oklahoma, were reduced by 448,000 barrels, while gasoline inventories rose 4.4 million barrels, compared to badysts' expectations in a Reuters poll on a drop in inventories. 730,000 barrels.

Official figures from the US government are expected Wednesday morning. [EIA/S ]

(GRAPHIC – US crude stocks, weekly changes since 2017 png: tmsnrt.rs/2XlX17b)

Signs of heightened tensions in the Middle East offset the weak global growth outlook of the International Monetary Fund, which had kept prices largely flat for most of Tuesday's session.

Iran's capture of a British oil tanker last week has raised concerns over supply disruptions in the Strait of Ormuz, through which about one-fifth of the world's oil is being transported .

The United States had declared that a naval ship had "destroyed" a drone after threatening the ship, but Iran had indicated that it had no information about the loss from a drone.

"We are confident of having shot down a drone, we may have done a second one," General Kenneth McKenzie told CBS News in an interview.

The US warship Boxer may have shot down a second drone last week, a US official who requested anonymity told Reuters, although this remains to be confirmed.

Tensions arise as the United States aims to reduce Iranian oil exports and in the context of supply-side reductions since the beginning of the year to support prices.