Oil costs extended profits on Wednesday after rising in the earlier session on renewed hopes for U.S.-China commerce deal and on the potential for conflict between the U.S. and Iran in the Middle East after last week’s Tanker incident.
Brent crude futures were up 3 cents at $62.17 a barrel by 0330 GMT. They rose 2% on Tuesday.
U.S. West Texas Intermediate crude gained 12 cents to $54.02 a barrel. The U.S. benchmark grew 3.8% within the last session.
In a tweet, U.S. President Donald Trump stated planning was happening for him to meet Chinese President Xi Jinping at the G20 summit in Osaka, Japan, the following week.
That comes after talks about reaching a broad deal on commerce between the USA and China broke down last month after Washington blamed the Chinese of withdrawing previously agreed commitments.
Interaction between the two sides since then has been limited, and Trump has warned, repeatedly, to slap more tariffs on Chinese merchandise in an acceleration that companies in both countries want to be away from.
“International demand for crude experienced boost expectations that trade talks are proving some positive signs following President Trump’s tweets,” mentioned Edward Moya, senior market researcher at OANDA in New York.
Both oil benchmarks gave up earlier surge in the Asian session after information confirmed that Japan’s exports fell for six consecutive months in May as China-based shipments weakened, underscoring the impact of the trade struggle.
Strains in the Middle East after last week’s tanker assaults stay high, with Trump saying he was ready to take the army to halt Iran having a nuclear bomb; however, leaving open whether he would approve the use of force to guard Gulf oil supplies.