Oil Set for Weekly Gain as Supplies Drop, Iran Tension Persists - Bloomberg

Oil Set for Weekly Gain as Supplies Drop, Iran Tension Persists - Bloomberg:

Oil is set for a weekly increase as U.S. crude stockpiles tighten and lingering tensions surrounding Iran stoke concerns that energy flows from the Middle East may be disrupted.

Futures gained 0.6% in New York on Friday and are up 1.4% this week. American crude inventories have declined for the past six weeks, the longest run since January 2018. Iran tested a medium-range ballistic missile on Wednesday, according to a CNN report. European governments are seeking to assemble a naval mission to provide safe passage for ships through the Persian Gulf after a British tanker was seized by Iranian forces last week.

West Texas Intermediate for September delivery rose 33 cents to $56.35 a barrel on the New York Mercantile Exchange as of 8:34 a.m. local time. The contract ended Thursday up 14 cents at $56.02 a barrel.

Brent for September settlement climbed 34 cents to $63.73 a barrel on the ICE Futures Europe Exchange after gaining 0.3% on Thursday. The contract is up 2% this week. The global benchmark traded at a $7.31 premium to WTI.