Oil extended gains as investors assessed geopolitical risks with speculation that the U.S. president and Saudi Arabia’s crown prince discussed countering the influence of Middle East producer Iran.
Futures rose 0.2 percent after climbing to the highest level in more than three weeks on Tuesday. Donald Trump hinted at a withdrawal from a deal curbing Iran’s nuclear program as a U.S. visit by Saudi Arabia’s Mohammed Bin Salmanbegan. Such a decision would raise the risk of the OPEC member’s oil exports being curbed by sanctions. Meanwhile, industry data was said to signal an unexpected decline in American crude inventories last week.
West Texas Intermediate for May delivery added 13 cents to $63.67 a barrel on the New York Mercantile Exchange at 12:17 p.m. in Singapore. Total volume traded was about 57 percent below the 100-day average. The April contract expired Tuesday after adding 2.2 percent to $63.40, the highest close for front-month futures since Feb. 26.
Brent for May settlement gained 15 cents to $67.57 a barrel on the London-based ICE Futures Europe exchange. Prices rose $1.37, or 2.1 percent, to $67.42 on Tuesday. The global benchmark crude traded at a $3.89 premium to WTI for the same month.
Source : Bloomberg