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Oil Prices Rally On Reports Of Tanker Explosion In Gulf Of Oman

Oil prices rebounded on Thursday after oil tankers reportedly came under attack in the Gulf of Oman, raising fears of a wider conflict.

Benchmark Brent crude rallied 3.5 percent to $62.05 a barrel, after tumbling 2.7 percent on Wednesday to reach its lowest level since Jan. 28.

U.S. West Texas Intermediate crude futures were up 2.9 percent at $52.64 a barrel, after falling 4 percent in the previous session to hit its lowest level since Jan. 14.

The Iranian state news media reported that multiple tankers had been seriously damaged. A shipping industry official was quoted as saying that at least two tankers had been hit.

“We are aware of the reported attack on tankers in the Gulf of Oman. U.S. Navy ships in the area are rendering assistance,” the United States Fifth Fleet said in a brief statement.

Oil prices fell sharply in the previous session after the U.S. Energy Information Administration (EIA) reported an unexpected rise in U.S. crude stockpiles, dimming the outlook for global oil demand.

The material has been provided by InstaForex Company – www.instaforex.com