Oil gains as easing trade tensions counter supply fears

Bloomberg

Oil traded above $65 a barrel as global trade tensions showed signs of easing, countering concerns that US crude stockpiles may have resumed their expansion last week.
Futures in New York rose 0.3 percent, remaining near the year’s highest close set in January at $66.14. A resurgence in risk appetite has helped lift markets from equities to commodities after a report that the Trump administration is urging China to lower tariffs on cars during talks to calm trade tensions. Yet a small estimated increase in US inventories is keeping a lid on oil-price gains.
Oil has recovered near January highs after President Donald Trump last week appointed John Bolton as his national security adviser, signaling the US may pursue a more hard-line approach against Iran and disrupt outflows from the OPEC member. While global stockpiles are tightening in a sign that the Organization of Petroleum Exporting Countries’ production cuts are working, fears still remain that surging US production could thwart those efforts.
“Oil prices gained and now they’re testing this key resistance level” of the January high, said Hans Van Cleef, senior energy economist at ABN Amro. “We’re waiting for the inventory data to see if it can push prices higher. Markets expect them to remain little changed, so any surprise drop could do the trick.”
West Texas Intermediate crude for May delivery traded at $65.76 a barrel on the New York Mercantile Exchange, up 21 cents, at 11:05 a.m. London time, after falling 33 cents.
Total volume traded was about 28 percent below the 100-day average.
Brent for May settlement rose 27 cents to $70.39 a barrel on the London-based ICE Futures Europe exchange, after dropping 33 cents. The global benchmark traded at a $4.60 premium to WTI.