Oil prices rose on Wednesday after hit in the last session, hopes for the world’s two largest economies, the United States and China trade spat and the possibility for dispute in the Middle East between the U.S. and Iran after the attacks a week ago.
The international benchmark for oil prices, Brent crude futures gained 3 cents at $62.17 per barrel.
U.S. West Texas Intermediate (WTI) rose 12cents to $54.02 per barrel. The U.S. benchmark soared 3.8 percent in the previous session.
“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 Chines side has not confirmed a meeting would set up. Chinese media said Xi agreed to the gathering and emphasized that economic and trade wars should be resolved.
"Global demand for crude got a boost on expectations that trade talks are showing some positive signs following President Trump's tweets," said Edward Moya, senior market analyst at OANDA in New York.
Brent oil and WTI waived earlier increases in the Asian session after showed that Japan’s exports decline for six straight months in May as China-bound shipments declining, due to the trade war.
After last week tankers attacks the tension in the Middle East remain high, with Trump saying he prepared to take military action to prevent Iran having a nuclear bomb but left open whether he would sanction the use of force just to protect Gulf oil supplies.
Since last Thursday which happen the attacks, the worries of confrontation between Iran and U.S. have escalated which Washington accused on Tehran. However, Iran denied involvement.
Iran said on Monday it would break globally agreed curbs on its stock of low-enhanced uranium in 10 days, maybe paving the way for the country to develop a nuclear weapon. Moreover, European nations still have time to protect landmark nuclear deal.
Acting U.S. Defense Secretary Patrick Shanahan reported that the U.S. deploying around 1,000 more troops to the Middle East for what he said were defensive purposes, quoting worries about a warning from Iran.
The Organization of the Petroleum Exporting Countries (OPEC) and other oil producer including Russia, known as OPEC+ group, to decide whether to prolong a supply decline deal that end later this month. Some of the markets members are also waiting for the meeting.
According to OPEC sources on Tuesday, OPEC and non-OPEC countries are discussing holding meetings by next month in Vienna, a date range suggested by Iran. However, OPEC itself considering gathering on July 1-2 thought is still saying meeting will hold on June 25-26 on its Website.
After two consecutive weeks of unexpected builds, U.S. crude stocks dropped by 812,000 a week ago to 482 million, industry group the American Petroleum Institute said.
The report from the government’s Energy Information Administration is due on Wednesday.