Crude jumps 6% on Middle East tensions

MUMBAI/LONDON: Dubai Mercantile Exchange (DME) said that Oman oil price for August delivery reached $62.64.
The DME statement said that the price of Oman oil rose $1.35 from the price of Wednesday, which was $61.29.
The average price of Oman oil for July delivery has stabilised at $69.99, thus $1.17 per barrel lower than June delivery.
Meanwhile, world oil prices spiked more than six per cent on President Donald Trump warning Iran made “a very big mistake” after it boasted of downing a US spy drone.
The developments accelerated day-on-day gains in US oil benchmark WTI in late New York morning trading.
Europe’s Brent Crude rose by nearly five per cent at one point, before both contracts pulled back somewhat.
Further solid support for oil prices, as for global stock markets, also came from the US Federal Reserve signalling it could soon cut interest rates, while the dollar and US Treasury yields fell.
The Bank of England, leaving key interest rates unchanged, warned against the rising danger of a no-deal Brexit, which analysts took as a sign that it, too, seems ready to take a more accommodating stance.
The US later confirmed a surveillance drone designed for high-altitude missions was brought down by Iranian forces, but insisted it was in international airspace.
“This will only stoke tensions in the region and produce short-term support for oil prices,” said analyst Neil Wilson at trading site Markets.com.