New York – Oil prices jumped, rising more than one US dollar per barrel in late trading Tuesday or Wednesday morning WIB (06/19/2019), after it was reported that China and the United States (US) restarted trade talks ahead meeting at the G20 summit later this month, which sparked hopes that the two countries would complete a trade war. Positive signs of global trade help ease market concerns about the potential for a slowdown in energy demand.
While protracted tensions in the Middle East following last week’s attack on two oil tankers in the Gulf of Oman, sparked fears of production disruptions, while providing support for oil prices.
The benchmark US, West Texas Intermediate (WTI) crude oil futures for July delivery rose US $ 1.97 or 3.8 percent, to US $ 53.90 per barrel on the New York Mercantile Exchange. While the global benchmark, Brent crude oil futures for August delivery rose US $ 1.20 or 2.0 percent, to US $ 62.14 per barrel on the London ICE Futures Exchange.
“Making excellent telephone conversations with President Xi from China. We will hold a meeting at the G-20 Summit in Japan. Our respective teams will start talks before our meeting,” said US President Donald Trump on his Twitter account.
China, which had previously refused to say whether the two leaders would meet, confirmed the meeting.
While fears of confrontation between Iran and the United States have increased since the oil tanker attack on Thursday (06/13/2019) ago. Washington has accused Tehran. However, Iran has denied involvement. Trump said he was ready to take military action to stop Tehran.
Market participants are also awaiting a meeting of the Organization of Petroleum Exporting Countries (OPEC) and other producers including Russia, a group known as OPEC +, to decide whether to extend supply cuts that ended this month.
OPEC and non-OPEC countries are discussing a meeting on July 10-12 in Vienna, the range of dates proposed by Iran, OPEC sources said on Tuesday (06/18/2019).