Oil prices have increased slightly as fears over the conflict between the US and Iran eased.
Investors’ focus has now moved towards the much-awaited initial US-China trade deal scheduled for this week.
According to Reuters, Brent crude futures were up $0.20 at $65.18 a barrel. West Texas Intermediate (WTI) also rose $0.16 at $59.20 a barrel.
It also reported that oil prices have surged to their highest in almost four months. This follows the US-drone killing of an Iranian military commander.
Samsung Futures Seoul commodities analyst Kim Kwang-rae said: “The possibility of the war between the United States and Iran has disappeared … For the week, the signing of the US-China trade deal would lift oil prices on expectations for higher demand.”
Global benchmark Brent was at $71.75 per barrel last week before dropping to below $65 on Friday.
Backwardation in Brent LCoC1-LCOc2 futures is currently at $0.73 per barrel, while the WTI backwardation CLc1-CLc2 is at $0.05 per barrel.
Energy Aspects Singapore oil analyst Virendra Chauhan said: “The fundamentals for WTI remain weak for the coming months and stocks are expected to build at Cushing.
“For Brent, which is a broader indicator of the global crude market, it is a combination of supply and demand.”
The US and China have scheduled to negotiate an interim trade deal in Washington on Wednesday.
