Oil prices edged higher for a second day on July 25 due to falling US crude inventories and concerns about Iran and Venezuela.
Global benchmark Brent crude was up 50 cents, or 0.7%, at $73.94 a barrel by 0805 GMT, after gaining 0.5% on July 25, according to Reuters. US light crude was 5 cents higher at $68.57, having risen nearly 1% in the previous session.
According to the American Petroleum Institute (API) data on July 24. US crude and fuel stockpiles fell more than expected last week. U.S. crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, the API said.
Plummeting Venezuelan oil production also supported oil prices.
Meanwhile, on July 23, US President Donald J. Trump warned his Iranian counterpart, Hassan Rouhani, to “never, ever threaten the United States again or you will suffer consequences the likes of which few throughout history have ever suffered before.”
Despite reaction from the European Union and other signatories, Trump in May withdrew the US from a 2015 international agreement to curb Iran’s nuclear programme.
Iran, which is a main oil supplier, has previously threatened to shut the Straits of Hormuz,one of the world’s most strategically important choke points as it isthe only sea passage from the Persian Gulf to the open ocean.
Trump’s tweet appears to be responding to weekend comments from Rouhani. “Iran’s power is deterrent and we have no fight or war with anybody but the enemies must understand well that war with Iran is the mother of all wars,” the Iranian President was quoted as saying.