TOKYO, July 19 (Reuters) - Oil prices rose more than 1% onFriday after the U.S. Navy destroyed an Iranian drone in theStrait of Hormuz, a major chokepoint for global crude flows,again raising tensions in the Middle East.
Brent crude futures were up 82 cents, or 1.3%, at$62.75 by 0100 GMT. They closed down 2.7% on Thursday, fallingfor a fourth day.
West Texas Intermediate crude futures firmed 61cents, or 1.1%, at 55.91. They fell 2.6% in the previoussession.
The United States said on Thursday that a U.S. Navy ship had"destroyed" an Iranian drone in the Strait of Hormuz after theaircraft threatened the vessel, but Iran said it had noinformation about losing a drone.
The move comes after Britain pledged to defend its shippinginterests in the region, while U.S. Central Command chiefGeneral Kenneth McKenzie said the United States would work"aggressively" to enable free passage after recent attacks onoil tankers in the Gulf.
Still, the longer-term outlook for oil has grownincreasingly bearish.
The International Energy Agency (IEA) is reducing its 2019oil demand forecast due to a slowing global economy amid aU.S.-China trade spat, its executive director said on Thursday.
The IEA is revising its 2019 global oil demand growthforecast to 1.1 million barrels per day (bpd) and may cut itagain if the global economy and especially China shows furtherweakness, Fatih Birol said.
"China is experiencing its slowest economic growth in thelast three decades, so are some of the advanced economies ... ifthe global economy performs even poorer than we assume, then wemay even look at our numbers once again in the next months tocome," Birol told Reuters in an interview.
Last year, the IEA predicted that 2019 oil demand would growby 1.5 million bpd but had already cut the growth forecast to1.2 million bpd in June this year.
Speculators have exited options positions that could haveprovided exposure to higher prices in the next several years,market participants said on Thursday.
U.S. offshore oil and gas production has continued to returnto service since Hurricane Barry passed through the Gulf ofMexico last week, triggering platform evacuations and outputcuts.
Royal Dutch Shell, a top Gulf producer, said Wednesday ithad resumed about 80% of its average daily production in theregion.(Reporting by Aaron Sheldrick; editing by Richard Pullin)
