TOKYO (Reuters) – Oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a U.S. military drone and on hopes for a drop in U.S. interest rates that may stimulate global growth.
While U.S. President Donald Trump played down the destruction of the drone, tensions remain high after the latest incident in the Gulf, which followed tanker attacks last week that raised concerns about crucial oil supplies being disrupted.
Picture - Expectations - US - Federal - Reserve
The demand-side picture has also improved, with expectations that the U.S. Federal Reserve will cut interest rates at its next meeting and with plans by Beijing and Washington to resume talks to resolve a trade war that has hit economic growth prospects.
Brent crude was up 39 cents, or 0.6%, at $64.84 a barrel by 0034 GMT. The global benchmark rose 4.3% on Thursday and is heading for a weekly gain of more than 4% after four weeks of decline.
US - West - Texas - Intermediate - Crude
U.S. West Texas Intermediate crude was up 32 cents, or 0.6%, at $57.39 a barrel. The U.S. benchmark rose 5.4% on Thursday and is on track for a nearly 10% increase this week.
Potential supply “disruptions have boosted energy prices combined with the dollar weakness after the Fed signaled an interest rate is near,” Alfonso...
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