Crude oil prices domestically and worldwide rose more than $1 a barrel Tuesday after U.S. President Trump said he would hold an extensive meeting with Chinese President Xi Jinping at the G20 summit later this month, Kallanish Energy reports.
Tension in the Middle East rose after last week’s tanker attacks, with the U.S. to send 1,000 more troops to the Middle East, also provided price support.
U.S. West Texas Intermediate crude oil futures rose $1.75, or 3.4%, to $53.68 a barrel. Brent crude futures increased $1.07, or 1.8%, to $62.01/Bbl.
Extended meeting at G20 summit
“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting,” Trump tweeted.
The Chinese side has not confirmed a meeting would take place. Chinese state media said Xi agreed to the meeting and emphasized in the call economic and trade disputes should be solved through dialogue, Reuters reported.
Fears of a confrontation between Iran and the U.S. have grown since last Thursday’s oil tanker attacks, which Washington has blamed on Tehran. Iran has denied involvement.
Military action possible
Trump said he was prepared to take military action to stop Tehran having a nuclear bomb but left open whether he would sanction the use of force to protect Gulf oil supplies.
Iran Monday said it would breach internationally agreed-to curbs on its stock of low-enriched uranium within 10 days, adding European nations still had time to save a nuclear deal.
Market participants are also awaiting a meeting between representatives of Opec+, the oil-producer group that includes most Opec nations, along with a number of non-Opec producers led by Russia.
Trouble setting Opec+ meeting dates
For six months, Opec+ has tried to maintain keeping 1.2 million barrels per day (Mmbpd) of crude off the world market, an agreement that expires on June 30.
Originally, Opec+ meetings were slated for next week, then were pushed back to July 3-4, and now there is talk of moving the talks to July 10-12, in Vienna.
Oil prices have fallen by more than 15% from April’s 2019 highs, partly because of concerns over the U.S.-China trade war and disappointing economic data.
High U.S. crude stockpiles, partly due to growing domestic production, have also weighed on the market. Commercial stocks were at their highest level since July 2017 and about 8% above the five-year average for this time of year, according to government data last week.
This post appeared first on Kallanish Energy News.