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Tankers are offloading millions of barrels of Iranian oil into storage tanks at Chinese ports, creating a hoard of crude sitting on the doorstep of the world’s biggest buyer.

Oil surrendered an early gain July 19 as Tehran denied President Donald Trump’s claim that the U.S. downed an Iranian drone near the Strait of Hormuz, an assertion which had earlier helped oil snap back from four days of losses.

Oil traded near a seven-week high as supply risks from a storm in the Gulf of Mexico and falling U.S. stockpiles were countered by a weak market outlook from OPEC in 2020.

Canada’s oil-sands producers are offering to commit to shipping a certain amount of their crude by rail in return for the Alberta government raising its production limits.

Oil held above $57 a barrel as rising tension in the Middle East kept investors wary of potential supply disruptions. Futures were little changed in New York after rallying 2.2% since July 3.

Oil rose to a five-week high as a huge drop in U.S. crude inventories bolstered the outlook for demand. Futures in New York climbed 2.7% June 26 after the U.S. Energy Information Administration said domestic stockpiles fell by 12.8 million barrels last week.

The U.S. average retail price of diesel dropped 1.5 cents to $3.136 a gallon, the Department of Energy reported. Crude oil plunged to $53 a barrel and flirted with a bear market as the tensions surrounding international trade mounted.

U.S. oil refiners could get hit if crude is included in President Donald Trump’s threatened 5% tariff on Mexican goods, although the effect may be tempered by their growing fuel exports.

The Trump administration is committed to making fossil fuels cleaner rather than imposing “draconian” regulations on oil, gas and coal, U.S. Energy Secretary Rick Perry said May 30.

Oil rose after a government report showed shrinking U.S. gasoline supplies, suggesting more demand ahead for crude as tensions flare in the Middle East.