(NEW YORK, USA) – Oil prices rose slightly on Friday, 14 August, after the United States threatened an indefinite naval blockade of Iran. The move revived concerns about crude oil supplies.
Brent crude futures gained 1 cent, or 0.1 percent, to 87.08 US dollars per barrel. West Texas Intermediate crude futures rose 6 cents to 81.31 US dollars per barrel. Brent is equal to about 68.50 British pounds per barrel. West Texas Intermediate is equal to about 63.96 British pounds per barrel.
The United States warned on Thursday that it could continue a naval blockade of Iran for an open ended period. Washington also said it would increase economic pressure on Tehran as ceasefire talks reached a dead end.
The prospect of a longer conflict between the United States and Iran has limited the supply of crude oil. This concern was balanced this week by forecasts from OPEC and the International Energy Agency. Both bodies lowered their expectations for demand growth in the market.
Official data showed the largest weekly rise in United States crude oil inventories in more than three and a half years. This increase in stockpiles also helped to limit price gains.
On Thursday, oil prices fell after gains in earlier sessions. Attention turned to expectations of lower global demand for crude this year. No progress was made on reopening the Strait of Hormuz.
OPEC and its allies agreed earlier to increase oil production in September.