Oil prices rebounded on Friday after Trump reiterated threats against Iran and heightened concerns about supply
Oil prices rebounded on Friday after the USA reiterated threats against Iran, the leading oil producer in the Middle East, and heightened concerns about military intervention that could disrupt supply.
March Brent crude rose 43 cents, or 0.7%, to $64.49 a barrel as of 05:22 GMT. WTI crude also rose 42 cents, or 0.7%, to $59.78 a barrel.
Both contracts had fallen about 2% on Thursday. They rebounded after Trump said the U.S. had an "armada" moving toward Iran but hoped it wouldn't have to use it. Iran is being warned to back down on its tough stance against protesters or restart its nuclear program.
Iran exports significant amounts of oil to China, the fourth-largest producer in the Organization of Petroleum Exporting Countries (OPEC) and the world's second-largest oil consumer.
Brent and WTI oil prices had risen earlier in the week due to Trump's threats to invade Greenland, but fell on Thursday after he backed down on military intervention. These threats could destabilize the transatlantic alliance.
Trump backed down after Denmark, which controls the Arctic island, said NATO and the US had reached an agreement that would give them "full access" to Greenland.
Prices also softened after negative government data showed that inventories rose in the US, the world's largest oil consumer, due to a slowdown in fuel demand last week.
According to data released Thursday by the US Energy Information Administration (EIA), crude oil inventories rose by 3.6 million barrels for the week ending January 16; This is higher than the 1.1 million barrel increase predicted by analysts.
This figure also surpasses the 3 million barrel increase reported by the American Petroleum Institute (API) trading group on Wednesday, according to market sources.
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