Oil prices advanced for a second consecutive session during Wednesday's Asian trade, climbing more than 1% as traders weighed geopolitical uncertainties and renewed optimism about United States-China trade talks.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures rose 97 cents, or 1.6%, to $62.29 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 99 cents, or 1.7%, to $58.23 per barrel.
ANZ analysts said: “A rise in Russian supply also weighed on sentiment. Seaborne crude shipments from Russia climbed to the highest in 29 months in the past four weeks, reaching 3.82mb/d on 19 October, on a four-week moving average basis.
"However, prices found support in reports that the U.S. is planning to refill its strategic reserve. The U.S. Energy Department announced that it plans to buy oil for delivery in December and January, using a portion of the USD171m from Trump’s signature tax and spending law allotted for crude purchases.”
Fresh supply risks have emerged following the indefinite postponement of a summit between U.S. President Donald Trump and Russian President Vladimir Putin, as well as growing Western scrutiny of Asian purchases of Russian crude.
Tensions also intensified between Washington and Caracas after a group of independent United Nations experts condemned recent U.S. military strikes in international waters against Venezuelan vessels.
The strikes, ordered by President Trump in recent months, targeted at least six ships in the Caribbean suspected of trafficking narcotics as part of a broader campaign against what Washington calls a “narcoterrorist” threat originating from Venezuela.
At the same time, market participants remain attentive to the progress of U.S.-China trade negotiations, with officials from both countries scheduled to meet later this week in Malaysia.
