Oil Holds Gains as Focus Shifts to Trump in Mideast
Oil held onto its recent recovery as attention shifted from the de-escalation of the U.S.-China trade war to the Middle East.
Brent edged higher above $65 a barrel, having risen more than 6% in the previous three sessions.
President Donald Trump, who has signaled progress in nuclear talks with Iran, began his Middle East trip on Tuesday with a stop in Saudi Arabia, the de-facto leader of OPEC+. The kingdom has been pushing the cartel to increase output to punish non-compliant members, contributing to the recent price decline. A 90-day truce on tariffs between the U.S. and China, the top two crude consumers, has offered some reprieve.
“The macroeconomic outlook is improving rapidly,” said Ole Hvalbye, commodities analyst at SEB. “Attention is shifting from the de-escalation of the U.S.-China trade war back to market fundamentals and geopolitical developments in the Middle East.”
Oil has fallen more than 10% since Trump first announced sweeping tariffs in early April, threatening global economic growth and fuel demand. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies are seen further raising output at a June 1 meeting, adding to concerns about a supply glut later this year. Brent for July settlement edged 0.3% higher to $65.18 a barrel at 10:19 a.m. in London. WTI for June delivery rose 0.5% to $62.25 a barrel
Source: Bloomberg
