Oil markets tense on Middle East crisis, US-China trade spat
SINGAPORE: Oil markets remained tense yesterday on concerns over a military escalation in Syria, although prices remained some way off Wednesday’s highest since late 2014 as bulging American supplies weighed.
Ongoing trade disputes between the United States and China also kept markets on edge, traders said.
Brent crude futures were at US$72.14 per barrel at 0536 GMT, up 8 cents, or 0.1 per cent from their last close.
US WTI crude futures were at US$67.03 a barrel, up 21 cents, or 0.3 per cent from their last settlement.
In China, Shanghai crude futures were also up, rising 8.9 yuan to 427.1 yuan (US$68.03) per barrel, up 2.1 per cent and with record volumes traded on the product that was only launched in late March.
Both Brent and WTI hit their highest since late 2014 of US$73.09 and US$67.45 per barrel on Wednesday, respectively, after Saudi Arabia said it intercepted missiles over Riyadh and US President Donald Trump warned Russia of imminent military action in Syria.
“Geopolitical risks outweighed an unexpected rise in inventories in the US,” ANZ bank said on Thursday.
Ongoing concerns of a prolonged trade dispute between the United States and China are also keeping markets on edge.
China lashed out at the United States on Thursday saying that the trade disputes, in which both sides have threatened to impose tariffs on imports of several products, were “single-handedly provoked by the US” and that Beijing was prepared to escalate the spat if Washington did not back off from its threatened import tariffs. — Reuters