Oil rises after U.S. Navy downs Iranian drone; set for weekly fall - Reuters

Oil rises after U.S. Navy downs Iranian drone; set for weekly fall - Reuters:

Oil prices rose on Friday as tensions brewed again in the Middle East after a U.S. Navy ship destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

Benchmark crude prices were still on track for their biggest weekly decline in seven weeks, having fallen sharply earlier in the week on hopes for easing Middle East tensions as well as demand concerns and a dwindling U.S. storm impact.

Brent crude LCOc1 futures were up 81 cents, or 1.3%, at $62.74 a barrel by 0642 GMT, having risen to $63.32. Brent fell 2.7% on Thursday, falling for a fourth straight session, and was set for a weekly drop of more than nearly 6%.

West Texas Intermediate crude CLc1 futures rose 59 cents, or 1.1%, at $55.89 per barrel, after touching $56.36. They ended 2.6% lower in the previous session, and were headed for a weekly decline of more than 6%.