Oil Rises After Xi's Speech on Optimism US-China Spat May Ease

Crude Oil Price Forecast: Demand Now in Focus

Oil firm

"The odds of a coordinated response to the chemical-weapon attack in Syria (http://www.marketwatch.com/story/trump-issues-warning-after-dozens-killed-in-apparent-chemical-weapons-attack-in-syria-2018-04-08) is making short selling more risky".

Brent crude oil briefly rose above $70 per barrel, but at the time of writing the price was at $69.83 a barrel, up 1.72 per cent.

Chinese and USA officials have also softened their rhetoric over their trade spat, easing worries over the potential for a slowdown in demand for oil.

On the New York Mercantile Exchange, May West Texas Intermediate crude tacked on $2.09, or 3.3%, to settle at $65.51 a barrel. The total count now adds up to 808, the highest level since March 2015, suggesting that the U.S. will be having more supply to come.

Geopolitical concerns elevated crude prices on Tuesday after President Donald Trump canceled his scheduled trip to multiple South American countries to focus on the USA response to developments in Syria.

Meanwhile, news that Saudi Arabia is aiming for an $80 oil price offered further support, according to Flynn.

Oil prices fell about 2 percent on Friday after U.S. President Donald Trump threatened new tariffs on China, reigniting fears of a trade war between the world's two largest economies that could hurt global growth.

"The Saudis are fully committed to getting oil to $80 a barrel".

Past the trade dispute, changes in the Trump administration have triggered fears over the possibility of returning USA sanctions on main oil exporting countries, including Iran, Venezuela, and Russian Federation.

However, soaring USA crude production, which has jumped by a quarter since mid-2016, threatens to undermine OPEC's efforts. "We're taking a hit with the rest of the market".

The EIA's weekly petroleum supply data are due Wednesday.

The West Texas Intermediate (WTI) for May delivery rose 2.09 US dollars to settle at 65.51 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery added 2.39 dollar to close at 71.04 dollars a barrel on the London ICE Futures Exchange. That would be a second week of declines after a surprise drop of 4.6 million barrels a week earlier.

Oil prices are still showing a gain so far this year, thanks to healthy demand and by supply restraint led by the Organization of the Petroleum Exporting Countries, which started in 2017 to rein in oversupply and prop up prices.

Among refined products, May gasoline rose 2.9% to $2.041 a gallon and May heating oil added 3.4% to $2.065 a gallon.

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