Oil rallied on speculation the U.S. President’s appointment of afamed hawk as his new security adviser could increase geopolitical tensions, drawing investors’ focus away from the growing fears of a trade war.
Futures climbed as much as 1.7 percent in New York, heading for the biggest weekly advance since January. President Donald Trump said he will replace White House National Security Adviser H.R. McMaster with hardliner John Bolton ahead of a key decision on whether to maintain the Iran nuclear deal. Abandoning the accord raises the prospect of sanctions against the OPEC-member’s oil sales, analysts have said. Prices slumped 1.3 percent on Thursday after Trump called for tariffs on at least $50 billion in Chinese imports.
West Texas Intermediate crude for May delivery rose as much as $1.12 to $65.42 a barrel on the New York Mercantile Exchange and traded at $65.03 at 1:22 p.m. in Tokyo. Prices were 4.3 percent higher on the week, the most since January. The contract fell 87 cents to $64.30 on Thursday.
Brent for May settlement added 66 cents to $69.57 on the London-based ICE Futures Europe exchange after earlier touching $70 a barrel for the first time since February on an intraday basis. The global benchmark traded at a $4.56premium to WTI for the same month. Futures are up 5 percent this week, the biggest weekly jump since July.
Source : Bloomberg