Oil steady

LONDON. — Oil prices steadied yesterday as an easing of trade tensions between the US and China and a surprise draw in US crude inventories last week supported the market.

Front-month Brent crude for June delivery was virtually unchanged at $68,01 at 9.35am GMT. US West Texas Intermediate (WTI) crude for May delivery was down 4c at $63,33 a barrel.

“Oil prices are profiting from the general brightening of sentiment on the markets as signs emerge that the trade dispute is easing between the US and China,” analysts at Commerzbank said in a note.

“I suspect we are going to have period of wait and see in markets as both parties enter into a period of negotiations before those tariffs actually go into effect,” BNP Paribas head of commodities strategy Harry Tchilinguirian told the Reuters Global Oil Forum.

WTI and Brent had hit two-week lows on Wednesday after China proposed a broad range of tariffs on US exports, feeding fears of a trade war. But prices rebounded after US crude inventories fell by 4,6-million barrels last week, compared with analysts’ expectations for an increase of 246 000 barrels, according to Energy Information Administration (EIA) data.

Oil cartel Opec member Qatar’s energy minister told Reuters the organisation should stay the course in its joint cuts with non-Opec members led by Russia to allow increased investment in the oil industry. — BusinessDay.