Oil expands earnings despite tensions in the Middle East

TOKYO (Reuters) – Oil prices climbed on Wednesday, prolonging the strong gains recorded in the previous session on the hope of a trade deal between China and China and lingering tensions in the Middle East. East after tanker attacks last week.

Futures contracts on Brent rose 34 cents, or 0.6%, to $ 62.48 per barrel at 00:28 GMT. They rose 2% Tuesday.

West Texas Intermediate Intermediate Crude gained 54 cents, or 0.8%, at $ 54.34 per barrel. The US benchmark jumped 3.8% during the last session.

In an article on Twitter, US President Donald Trump said preparations for his meeting with Chinese President Xi Jinping at the G20 summit in Osaka next week.

This comes after the break-up of negotiations for a broad trade deal between the United States and China last month after Washington accused the Chinese of moving away from earlier commitments.

Since then, trade between the two parties has been limited, and Trump has repeatedly threatened to impose more tariffs on Chinese products as part of an escalation that companies in both countries wish to avoid.

"Global demand for crude has received renewed hope that trade talks are showing positive signs after President Trump's tweets," said Edward Moya, senior market analyst at OANDA in New York.

Tensions in the Middle East after oil tankers attacks last week also remain high. Trump said he was ready to take military action to prevent Iran from equipping itself with a nuclear bomb, while stating it would authorize the use of force. to protect oil supplies from the Gulf.

Fears of a confrontation between Iran and the United States have increased since oil tanker attacks last Thursday, which Washington blames Tehran. Iran has denied any involvement.

Iran said this week that it will break its stock of low enriched uranium by 10 days, in line with international agreements, adding that European countries still have time to save an agreement. historical nuclear.

The United States is deploying about 1,000 additional troops in the Middle East for defensive purposes, which Washington has described as defensive, citing concerns about a threat from Iran.

Market players are also waiting for a meeting between the Organization of Petroleum Exporting Countries (OPEC) and other producers, including Russia, a group known as OPEC +, to decide to extend or not an offer reduction pact that ends this month.

OPEC countries and non-OPEC countries are discussing the holding of meetings in Vienna from July 10 to 12, a range of dates proposed by Iran, said Tuesday. sources of OPEC.

US stocks of crude also fell 812,000 barrels last week to 482 million euros, the industrial group announced Tuesday the American Petroleum Institute.

The official estimates are due Wednesday. [EIA/S]