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Bloomberg
Brent crude traded around $70 a barrel as a two-day rebound eased on signs the US and China are still far from reaching a trade deal, but prices remained supported by supply risks in the Middle East.
Futures in London held steady after rallying 3.5 percent. President Donald Trump said on a state visit to Japan that the US “isn’t ready†to make a trade deal with China. While Trump also said he’s not pursuing regime change in Iran, alleviating concerns of a conflict in the Persian Gulf, the situation has remained tense since a Saudi Arabia-led coalition blamed Iran for supporting terror attacks.
Brent has now clawed back more than half of its trade war-induced tumble of about 6 percent. A decline in US rigs to the lowest in a year has aided prices, and the supply backdrop remains rife with risks.
“The oil market currently finds itself caught between supply risks and concerns about demand,†said Carsten Fritsch, an analyst at Commerzbank AG
in Frankfurt.
Brent for July settlement slipped 9 cents to $70.02 a barrel on London’s ICE Futures Europe exchange, after dropping as much as 0.6 percent earlier. The contract closed up 2.1 percent.