Oil rises after US Navy destroys Iranian drone

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Fri, 19 Jul 2019 - 09:32 GMT

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Fri, 19 Jul 2019 - 09:32 GMT

FILE PHOTO: FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol

FILE PHOTO: FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol

CAIRO – 19 July 2019: International oil prices rose on Friday after a U.S. Navy ship destroyed an Iranian drone in the Strait of Hormuz, fueling tension in the Middle East.

Benchmark crude prices were on their way for the biggest decline in seven weeks.

Vanguard Markets also clarified indications that the U.S. Federal Reserve will cut rates aggressively to support the economy were also behind Friday’s gains.

The United States announced on Thursday destroying an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel.

On the other hand, Iran said it had no information about losing a drone.

The International Energy Agency (IEA) has announced reducing its 2019 oil demand growth forecast to 1.1 million barrels per day (bpd) from 1.2 million bpd previously due to a slowing global economy amid a U.S.-China trade spat.

The IEA may cut further if the global economy and especially China shows further weakness.

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