LONDON: Analysts cited low inventories and resurgent Middle East dangers as reasons for Thursday’s increase in oil prices, despite the apparent cooling of global trade tensions. At 03:03 p.m. Saudi time, Brent crude futures were up 31 cents, or about 0.5 percent, to $68.83 a barrel. Crude futures for the US West Texas Intermediate were up 0.9 percent, or 61 cents, at $66.99.
US President Donald Trump has hinted at the possibility of an agreement with the EU and a deal with Beijing on illegal narcotics, and he has stated that letters informing smaller nations of their US tariff rates will be sent out shortly.
Ashley Kelty, an analyst at Panmure Liberum, stated that prices will probably settle down in the medium term. “The uncertainty surrounding the final scale of US tariffs and the resulting impact on global growth is likely to keep prices volatile in the near term,” she added.
According to John Evans, an analyst at PVM Oil Associates, the oil market was responding to a scenario of tighter inventories on Thursday. Markets were eager for more oil, as evidenced by the International Energy Agency’s statement last week, which noted that rising oil output was not resulting in increased stockpiles.
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