Oil Rises in Thin Trade With Iran Supply, Trade Talks in Focus
Oil rose for a second day amid signs of an easing tariff war between the US and key trading partners and the prospect of lower supplies from Iran.
West Texas Intermediate climbed more than 3% to top $64 a barrel after advancing almost 2% on Wednesday. Treasury Secretary Scott Bessent said the US would apply maximum pressure to disrupt Iran’s oil supply chain as his department sanctioned a second Chinese refinery accused of handling crude from the Islamic Republic.
The renewed focus on Iran came after signs that China may be willing to engage in talks with the US in a bid to ease the escalating trade war. The S&P 500 also advanced Thursday as negotiations between the US and Japan bolstered expectations that deals can be struck to avoid the worst effects of tariffs. Futures jumped to fresh highs after US President Donald Trump said he is confident a trade deal with the European Union could be achieved.
Oil prices were also propelled higher by investors covering short positions and algorithmic traders turning marginally more bullish ahead of the long weekend. Oil futures won’t trade on Friday, a holiday in many countries, crimping volumes.
WTI for May delivery gained 3.4% to $64.61 a barrel at 12:17 p.m. in New York.
Brent for June settlement rose 3.1% to $67.90 a barrel.
Source: Bloomberg
