Oil Heads for Worst Week Since May as U.S.- #Iran Tensions Simmer - Bloomberg

Oil Heads for Worst Week Since May as U.S.-Iran Tensions Simmer - Bloomberg:

Oil surrendered an early gain Friday as Tehran denied President Trump’s claim that the U.S. downed an Iranian drone near the Strait of Hormuz, an assertion which had earlier helped oil snap back from four days of losses.

Futures were down 8 cents Friday in New York after erasing an earlier 1.9% increase, heading for the steepest weekly decline since May. The initial rise came after the president’s assertion on Thursday that a U.S. warship “immediately destroyed” the Iranian drone that approached the USS Boxer. Iran’s Deputy Foreign Minister Seyed Abbas Araghchi denied the loss in a tweet, joking the U.S. might have shot down a drone of its own.

Oil is down more than 8% this week as fears of waning demand outweigh concern that an increase in tensions could curtail oil shipments through the Strait of Hormuz. The U.S.-China trade spat persists as well, with Trump reiterating Tuesday that he could impose additional tariffs on China. U.S. fuel stockpiles also unexpectedly expanded.