Oil rose for a second day after a drone attack on a Saudi Arabian oil field brought geopolitical risks back into focus, and as the prospect of more U.S.-China trade meetings spurred some investor optimism.
Futures in New York advanced 1.2% after climbing 0.7% on Friday to cap the first weekly gain in three. Yemeni rebels attacked oil and gas facilities at Shaybah field in the southeast part of the kingdom over the weekend, although there was only a small fire and no disruption to production, Saudi Aramco said in a statement. President Donald Trump said the U.S. is talking with China on trade but suggested he wasn’t ready to sign a deal yet.
Crude has fallen around 17% from a peak in late April as the U.S.-China trade war intensified, casting a pall over the global growth outlook. While a series of attacks on tankers and energy facilities in the Middle East have provided some temporary support to prices, oversupply remains the key concern for the market. Meanwhile, there are signs Saudi Arabia is struggling to muster support for its bid to convince OPEC and its allies to cut production further.
West Texas Intermediate crude for September delivery rose 64 cents, or 1.2%, to $55.51 a barrel on New York Mercantile Exchange as of 7:34 a.m. in London. The contract, which will expire on Tuesday, advanced 0.7% last week.
Brent for October settlement increased 79 cents, or 1.4%, to $59.43 per barrel on the ICE Futures Europe Exchange. The global benchmark is trading at a premium of $3.97 a barrel to WTI, near the smallest gap since March 2018.
Source : Bloomberg