Oil rises on U.S.-Iran tensions, but trade war concerns weigh

SINGAPORE: Oil costs rose on Tuesday on escalating U.S.-Iran tensions and amid expectations that producer membership OPEC will proceed to withhold provide this yr.

However good points have been checked by considerations {that a} extended commerce warfare between Washington and Beijing might result in a worldwide financial slowdown.

Brent crude futures, the worldwide benchmark for oil costs, have been at $72.24 per barrel at 0534 GMT, up 27 cents, or 0.Four %, from their final shut.

U.S. West Texas Intermediate (WTI) crude futures have been up 26 cents, or 0.Four %, at $63.36 per barrel.

“Escalating tensions between the U.S. and Iran, along with indicators that OPEC will proceed its manufacturing minimize, drove oil larger,” mentioned Jasper Lawler, head of analysis at futures brokerage London Capital Group.

U.S. President Donald Trump on Monday threatened Iran with “nice drive” if it attacked U.S. pursuits within the Center East. This got here after a rocket assault in Iraq’s capital Baghdad, which Washington suspects to have been organized by militia with ties to Iran.

Iran mentioned on Tuesday that it might resist U.S. strain, declining additional talks underneath present circumstances.

The strain comes amid an already tight market because the Group of the Petroleum Exporting International locations (OPEC), Russia and different producers have been withholding provide for the reason that begin of the yr to prop up costs.

A gathering has been scheduled for June 25-26 to debate the coverage, however the group is now contemplating transferring the occasion to July 3-4, in response to OPEC sources on Monday, with its de-facto chief Saudi Arabia signaling a willingness to proceed withholding output.

Value good points have been constrained by strain on monetary markets, which have this week been weighed down by worries that america and China are digging in for an extended, expensive commerce warfare that would lead to a broad world slowdown.

Singapore, seen as a bellwether for the well being of the worldwide financial system, on Tuesday posted its lowest quarterly development in practically a decade of 1.2 % year-on-year. Progress in Thailand, a key Asian rising market, additionally slowed to a multi-year low. —Reuters

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