U.S. oil futures hit their highest in over a month on Thursday as a potential hurricane threatened crude output in the Gulf of Mexico and as an incident involving a British tanker in the Middle East highlighted ongoing tensions there.
U.S. West Texas Intermediate (WTI) crude futures were up 11 cents at $60.54 a barrel by 00:55 GMT, after earlier touching the highest since May 23 at $60.63. They gained 4.5% in the previous session.
Brent crude futures were down 5 cents, or 0.1%, at $66.96 a barrel, after ending Wednesday up 4.4%.
Five boats believed to belong to Iranian Revolutionary Guards approached a British oil tanker on Wednesday and asked it to stop in Iranian waters close by, but withdrew after a British warship warned them over radio, a U.S. defense official said on Thursday.
Tensions have been high in the Middle East after attacks on tankers and the downing of a U.S. drone by Iran last month, following President Donald Trump’s unilateral withdrawal from a multi-party agreement with Tehran to end its nuclear program.
U.S. oil producers on Wednesday cut nearly a third of Gulf of Mexico crude output as what could be one of the first major storms of the Atlantic hurricane season threatened offshore oil production and began soaking Louisiana with heavy rains.
Source : Reuters