Oil prices edged higher on Tuesday as investors focused on the signing of a preliminary trade deal between the United States and China, the world’s top oil consumers, and on expectations of a drawdown in US crude oil inventories.
However, price gains were capped by receding Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month’s clashes.
Brent crude was up 16 cents, or 0.3per cent, at $64.36 per barrel by 0301 GMT after falling 1per cent on Monday. US West Texas Intermediate crude futures were up 13 cents, or 0.2per cent, at $58.21 a barrel.
“Oil prices are modestly rebounding, following four days of intense selling,” said Edward Moya, analyst at brokerage OANDA, pointing to trade-deal optimism and fading concerns over the US-Iran conflict.
