Oil prices ease, but Middle East tanker attacks support

TOKYO, June 14 (Reuters) - Oil fell on Friday after sharp
gains in the previous session when prices were boosted after
attacks on two oil tankers in the Gulf of Oman stoked concerns
of reduced crude flows through one of the world's key shipping
routes.
The attacks near Iran and the Strait of Hormuz countered
concerns about global demand that had hammered prices in recent
weeks, analysts said.
It was the second time in a month tankers have been attacked
in the world's most important zone for oil supplies, amid rising
tensions between the United States and Iran. Washington quickly
blamed Iran for Thursday's attacks, but Tehran bluntly denied
the allegation. Brent crude futures LCOc1 were down 17 cents, or 0.3%, at
$61.14 a barrel by 0041 GMT. They settled up 2.23% on Thursday,
at $61.31, having risen as much as 4.5%.
U.S. West Texas Intermediate crude futures CLc1 were down
39 cents, or 0.8%, at $51.89 a barrel. They closed 2.23% higher
at $52.28 a barrel in the previous session, having also risen as
much as 4.5%.
"The drums of war are beating and driving asset prices,"
Greg McKenna, strategist at McKenna Macro said in a morning
note.
Tensions in the Middle East have escalated since U.S.
President Donald Trump withdrew from a 2015 multinational
nuclear pact with Iran and reimposed sanctions, especially
targeting Tehran's oil exports.
Iran, which has distanced itself from the previous attacks,
has said it would not be cowed by what it called psychological
warfare.
U.S. Secretary of State Mike Pompeo said the United States
has assessed Iran was behind the attacks on Thursday, and
arrived at its conclusion based on intelligence, weapons used
and the level of expertise needed.
Iran "categorically rejects the U.S. unfounded claim with
regard to 13 June oil tanker incidents and condemns it in the
strongest possible terms," the Iranian mission to the United
Nations said in a statement on Thursday evening.