The tensions in West Asia means bad news for the global economy and the business community. Many international airlines have been re-routed, oil prices have risen sharply and volatility grips the equity markets. This report looks at some key numbers. #US #Iran #Gravitas #GlobalEconomy

Gravitas: US-Iran conflict, Impact on global economy

Oil prices jumped to their highest in months on Wednesday after Iran attacked American forces in Iraq in response to a US&nbsp;strike that killed an Iranian general last week, raising the spectre of a spiralling conflict and disrupted oil supplies.

<a href="https://www.wionews.com/world/iran-fires-missiles-at-us-bases-in-iraq-272811">Also Read:&nbsp;Iran fires missiles at US bases in Iraq</a>

Brent crude futures soared $1.83, or 2.7%, to $70.10 by around 0148 GMT, after earlier rising to $71.75, the highest since mid-September 2019.

West Texas Intermediate crude futures climbed nearly $2, or almost 3%, to $64.30 a barrel. It earlier reached a high of $65.85, the most since late April last year.

<a href="https://www.wionews.com/photos/soleimanis-killing-how-was-the-operation-carried-out-and-what-are-the-consequences-272077">In Pics: How was the operation to kill Soleimani was carried out and what are the consequences?</a>

Iran's missile attack on US-led forces in Iraq came in the early hours of Wednesday, hours after the funeral of Qassem Soleimani, the commander of the country's elite Quds Force killed in a US&nbsp;drone stroke on January&nbsp;3.

Tehran fired more than a dozen ballistic missiles from Iranian territory against at least two Iraqi military bases hosting US-led coalition personnel, the US&nbsp;military said on Tuesday.

"The obvious concern for markets, is where does this all end?", ING Research analysts said in a note.

"The worry is that we could see more from Iran, provoking US&nbsp;retaliation - a scenario that cannot be ruled out given the warnings from President (Donald) Trump," it said.

Iranian news agency Mehr said Iran's Islamic Revolutionary Guard Corps had targeted the base. Tehran has vowed retaliation for the killing of military commander Soleimani.

Sirens were heard and American helicopters were seen flying over Iraq's Ain al-Asad air base in Anbar province early on Wednesday, according to Iraqi broadcaster al Mayadeen.

"We are working on initial battle damage assessments," Pentagon spokesman Jonathan Hoffman said in statement, adding that the bases targeted were at Al-Asad air base and another in Erbil, Iraq.

Oil prices jumped to their highest in months on Wednesday after Iran attacked American forces in Iraq in response to a US strike that killed an Iranian general last week, raising the spectre of a spiralling conflict and disrupted oil supplies.

Oil prices jumped to their highest in months on Wednesday after Iran attacked American forces in Iraq in response to a US strike that killed an Iranian general last week, raising the spectre of a spiralling conflict and disrupted oil supplies. Also Read: Iran fires missiles at US bases in Iraq Brent crude futures soared $1.83, or 2.7%, to $70.10 by around 0148 GMT, after earlier rising to $71.75, the highest since mid-September 2019. West Texas Intermediate crude futures climbed nearly $2, or almost 3%, to $64.30 a barrel. It earlier reached a high of $65.85, the most since late April last year. In Pics: How was the operation to kill Soleimani was carried out and what are the consequences? Iran's missile attack on US-led forces in Iraq came in the early hours of Wednesday, hours after the funeral of Qassem Soleimani, the commander of the country's elite Quds Force killed in a US drone stroke on January 3. Tehran fired more than a dozen ballistic missiles from Iranian territory against at least two Iraqi military bases hosting US-led coalition personnel, the US military said on Tuesday. "The obvious concern for markets, is where does this all end?", ING Research analysts said in a note. "The worry is that we could see more from Iran, provoking US retaliation - a scenario that cannot be ruled out given the warnings from President (Donald) Trump," it said. Iranian news agency Mehr said Iran's Islamic Revolutionary Guard Corps had targeted the base. Tehran has vowed retaliation for the killing of military commander Soleimani. Sirens were heard and American helicopters were seen flying over Iraq's Ain al-Asad air base in Anbar province early on Wednesday, according to Iraqi broadcaster al Mayadeen. "We are working on initial battle damage assessments," Pentagon spokesman Jonathan Hoffman said in statement, adding that the bases targeted were at Al-Asad air base and another in Erbil, Iraq.

Oil prices surge to new high after Iran attacks US bases in Iraq

Oil prices climbed above $70 a barrel for the first time in four months on Monday amid fears that the US airstrike that killed Iran’s top military commander may trigger a retaliation and disrupt global energy supplies. #WestAsia #USIran #Oilprices

Oil prices top $70 a barrel amid West Asia conflict

A gauge of <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Asian shares</a> was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

The United States detected a heightened state of alert by Iran's missile forces, as President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump</a> warned the US&nbsp;would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target.

Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US&nbsp;killing of a top Iranian military commander and an Iraqi militia leader.

Spot gold surged 1.5 per cent&nbsp;to $1,579.55 per ounce in jittery trade and reached its highest since April 2013.

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> added to their gains on fears any conflict in the region could disrupt global supplies.

Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22.

"The risk of further escalation has clearly gone up&nbsp;given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital.

"Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that."

Watch Video:

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MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;slipped 0.7 per cent.

Japan's Nikkei slid almost 2 per cent&nbsp;in a sour return from holiday, while E-Mini futures for the S&amp;P 500&nbsp; fell 0.5&nbsp;per cent in very choppy trade.

Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent.

"Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769&nbsp;per cent&nbsp;having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks.

In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher.

On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low.

The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86.

The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks. The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target. Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of a top Iranian military commander and an Iraqi militia leader. Spot gold surged 1.5 per cent to $1,579.55 per ounce in jittery trade and reached its highest since April 2013. Oil prices added to their gains on fears any conflict in the region could disrupt global supplies. Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22. "The risk of further escalation has clearly gone up given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital. "Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that." Watch Video: MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.7 per cent. Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.5 per cent in very choppy trade. Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent. "Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank. Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769 per cent having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks. In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher. On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low. The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86. The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Gold, oil prices soar amid US-Iran tensions

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, <a href="https://www.wionews.com/world/latest-updates-on-iran-general-qassem-soleimanis-death-272457">Qasem Soleimani</a> by the USA erased&nbsp;new year gains on Monday as investors&nbsp;pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September.

The United States detected a heightened state of alert by Iran's missile forces, as President <a href="https://www.wionews.com/world/should-iran-strike-us-will-quickly-strike-back-says-trump-272374">Donald Trump</a> warned the US&nbsp;would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target.

Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US&nbsp;killing of the Iranian military commander and an Iraqi militia leader in a drone strike on a convoy at Baghdad airport.

Spot gold gained 1.6 per cent&nbsp;to $1,579.72 per ounce in jittery trade to reach its highest since April 2013.

Oil prices extended gains on fears any Middle East conflict could disrupt global supplies.

Brent crude futures rose 2.04 per cent&nbsp;to $70 a barrel, while US&nbsp;crude climbed 1.7 per cent&nbsp;to $64.12.

<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-at-18-month-highs-nikkei-finishes-year-up-18-270993">European shares</a> extended losses and were set for their worst day in a week, with the pan-European STOXX 600 index down 1.12 per cent&nbsp;by 0838 GMT. The European oil and gas stock index rose about 0.74 per cent&nbsp;and was the sole gainer among its peers, hitting its highest since July.

Watch:&nbsp;Equities crash on US-Iran tensions, Nifty sinks below 12,100

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"Geopolitical events by their nature are unpredictable, but previous periods of increased tensions suggest that the impact on wider markets tends to be short-lived, with more lasting effects confined to local markets," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"In general, this supports holding a diversified portfolio."

MSCI's All-Country World Index, which tracks shares in 47 countries, was down 0.43 per cent, erasing all its new year gains in its biggest two-day fall since early December.

In Asia, Japan's Nikkei slid almost 2 per cent&nbsp;in a sour return from holiday, while E-Mini futures for the <a href="https://www.wionews.com/business-economy/sp-500-snaps-win-streak-as-middle-east-tensions-push-down-wall-street-272037">S&amp;P 500</a> fell 0.7 per cent.

Chinese shares, which had opened in the red, reversed their losses, as did Australian shares which ended the day flat. Hong Kong's Hang Seng index lost 0.8 per cent.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.7725 per cent&nbsp;having fallen 10 basis points on Friday.

The yen remained the favoured safe haven among currencies thanks to Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher.

"Iran is almost certainly to respond in some scale, scope and magnitude," said Lee Hardman, currency analyst at MUFG.

Therefore "market participants are likely to remain nervous until there is more clarity over how geopolitical tensions between the US&nbsp;and Iran will proceed", Hardman said, noting that geopolitical tensions could hurt global economic growth, especially if the price of oil increases.

On Monday, the dollar was last at 107.965 yen, after falling to a three-month trough of 107.77 earlier in the session. The euro likewise eased to 120.61 yen having hit a three-week low.

The dollar was steadier against other majors, with the euro a tad firmer at $1.1172. Against a basket of currencies, the dollar was holding at 96.839.

The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, Qasem Soleimani by the USA erased new year gains on Monday as investors pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September.

Tensions escalate in the Middle East after the killing of Iranian commander of Quds Force, Qasem Soleimani by the USA erased new year gains on Monday as investors pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September. The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target. Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of the Iranian military commander and an Iraqi militia leader in a drone strike on a convoy at Baghdad airport. Spot gold gained 1.6 per cent to $1,579.72 per ounce in jittery trade to reach its highest since April 2013. Oil prices extended gains on fears any Middle East conflict could disrupt global supplies. Brent crude futures rose 2.04 per cent to $70 a barrel, while US crude climbed 1.7 per cent to $64.12. European shares extended losses and were set for their worst day in a week, with the pan-European STOXX 600 index down 1.12 per cent by 0838 GMT. The European oil and gas stock index rose about 0.74 per cent and was the sole gainer among its peers, hitting its highest since July. Watch: Equities crash on US-Iran tensions, Nifty sinks below 12,100 × "Geopolitical events by their nature are unpredictable, but previous periods of increased tensions suggest that the impact on wider markets tends to be short-lived, with more lasting effects confined to local markets," said Mark Haefele, chief investment officer at UBS Global Wealth Management. "In general, this supports holding a diversified portfolio." MSCI's All-Country World Index, which tracks shares in 47 countries, was down 0.43 per cent, erasing all its new year gains in its biggest two-day fall since early December. In Asia, Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.7 per cent. Chinese shares, which had opened in the red, reversed their losses, as did Australian shares which ended the day flat. Hong Kong's Hang Seng index lost 0.8 per cent. Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.7725 per cent having fallen 10 basis points on Friday. The yen remained the favoured safe haven among currencies thanks to Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher. "Iran is almost certainly to respond in some scale, scope and magnitude," said Lee Hardman, currency analyst at MUFG. Therefore "market participants are likely to remain nervous until there is more clarity over how geopolitical tensions between the US and Iran will proceed", Hardman said, noting that geopolitical tensions could hurt global economic growth, especially if the price of oil increases. On Monday, the dollar was last at 107.965 yen, after falling to a three-month trough of 107.77 earlier in the session. The euro likewise eased to 120.61 yen having hit a three-week low. The dollar was steadier against other majors, with the euro a tad firmer at $1.1172. Against a basket of currencies, the dollar was holding at 96.839. The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Global Markets: Shares swept new year gains, gold, oil prices jumps on US and Iran trade threats

Gold and other <a href="https://www.wionews.com/business-economy/gold-hits-two-month-peak-on-dollar-weakness-us-strikes-270962">safe-haven</a>&nbsp;assets including Oil prices increased over&nbsp;$2 a barrel on Friday because of&nbsp;the US&nbsp;killing of a top <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">Iranian commander</a> in an airstrike in Iraq ratcheted up tensions between the two national powers.&nbsp;

Traders were clearly spooked. The death of Iranian <a href="https://www.wionews.com/world/president-trump-ordered-action-against-irans-quds-force-commander-soleimani-us-department-of-defence-271773">Major-General Qassem Soleimani</a>, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge.

Europe's <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">stock markets</a> fell 0.5 per cent&nbsp;in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September.

The Middle East-focused oil markets saw the most dramatic moves. <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/oil-prices-steady-on-track-for-biggest-yearly-rise-since-2016-271227&amp;sa=U&amp;ved=2ahUKEwiN_7-hm-fmAhU0yzgGHRcGDn8QFjACegQICBAC&amp;usg=AOvVaw0VUxWW0N1ASYhJBKQq-jha">Brent crude</a> futures jumped nearly $3 to $69.16 a barrel,&nbsp;also the highest since September,&nbsp;before easing back to $68.42.

"We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said <a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">Jeffrey Halley</a>, senior market analyst for Asia Pacific at broker OANDA.

"I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts."

Soleimani's Quds Force and its paramilitary proxies, ranging from <a href="https://www.wionews.com/opinions/the-killing-of-iranians-general-qasem-soleimani-and-its-consequences-271884">Lebanon's Hezbollah</a> to the PMF in Iraq, have ample means to mount a multi-pronged response.

In September, US&nbsp;officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats.

German Bunds and US&nbsp;Treasuries,&nbsp;the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US&nbsp;10-year yields fell 5 basis points to a three-week low.

The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent&nbsp;year-on-year in December, beating analyst expectations for a 1.4 per cent&nbsp;rise.

"Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in <a href="https://www.wionews.com/business-economy/german-court-bans-uber-services-via-rental-cars-in-germany-269165">Frankfurt</a>. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region."

The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US&nbsp;Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US&nbsp;embassy in Baghdad.

Gold, a traditional refuge for risk-averse investors, rose 1 per cent&nbsp;to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase.

"After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at <a href="https://www.wionews.com/business-economy/indian-shares-slip-on-year-end-profit-booking-nifty-set-for-13-jump-in-2019-271230">Anand Rathi Shares</a> &amp; Stock Brokers in Mumbai.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers.

Gold and other safe-haven assets including Oil prices increased over $2 a barrel on Friday because of the US killing of a top Iranian commander in an airstrike in Iraq ratcheted up tensions between the two national powers. Traders were clearly spooked. The death of Iranian Major-General Qassem Soleimani, head of the elite Quds Force, prompted Iranian Supreme Leader Ayatollah Ali Khamenei to vow revenge. Europe's stock markets fell 0.5 per cent in early trading as hopes for a lengthy New Year rally vanished. Safe havens gained, with Japan's yen rising half a per cent to the dollar to a two-month high and the Swiss franc hitting its highest against the euro since September. The Middle East-focused oil markets saw the most dramatic moves. Brent crude futures jumped nearly $3 to $69.16 a barrel, also the highest since September, before easing back to $68.42. "We are only into the third day of the new year, and a big fat dollop of geopolitical uncertainty has landed on investors' desks," said Jeffrey Halley, senior market analyst for Asia Pacific at broker OANDA. "I am struggling to see how an Iranian riposte will not occur," he said. "Oil installations and tankers were my first thoughts." Soleimani's Quds Force and its paramilitary proxies, ranging from Lebanon's Hezbollah to the PMF in Iraq, have ample means to mount a multi-pronged response. In September, US officials blamed Iran for a missile and drone attack on oil installations of Saudi Aramco, the Saudi state energy giant and world's largest oil exporter. The Trump administration did not respond, beyond heated rhetoric and threats. German Bunds and US Treasuries, the world's benchmark government bonds, caught a bid, too. Ten-year German yields, which move inversely to prices, fell further away from seven-month highs touched earlier in the week. US 10-year yields fell 5 basis points to a three-week low. The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6 per cent year-on-year in December, beating analyst expectations for a 1.4 per cent rise. "Markets still remain quite thin after the holidays, but even in a regular session we would have seen a similar reaction," said Christian Lenk, a rates strategist at DZ Bank in Frankfurt. "The repercussions from the airstrike are not clearly forecastable and tensions remain high in the region." The airstrikes in Iraq also killed top Iraqi militia commander Abu Mahdi al-Muhandis. They came after US Defense Secretary Mark Esper said on Thursday there were indications Iran or forces it backed might be planning additional attacks, after Iranian-backed demonstrators stormed the US embassy in Baghdad. Gold, a traditional refuge for risk-averse investors, rose 1 per cent to a four-month high of $1,543.66. For the week, it has gained about 2 per cent, heading for a fourth consecutive weekly increase. "After the recent escalations in geopolitical issues, we see a resistance level near the $1,575 level for the next week," said Jigar Trivedi, a commodities analyst at Anand Rathi Shares & Stock Brokers in Mumbai.

Global Markets: Oil, gold, safe haven assets prices rose as US strike kills Iranian commander

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> traded at three-month highs on Monday, underpinned by optimism over an expected <a href="https://www.wionews.com/business-economy/gold-prices-steady-as-us-china-trade-deal-doubts-linger-263135">US-China trade deal</a>, while traders kept a close eye on the Middle East following a <a href="https://www.wionews.com/south-asia/us-airstrike-kills-25-is-terrorists-in-afghanistan-32150">US&nbsp;airstrike</a>.

Markets showed little initial reaction to news of the US&nbsp;strikes in Iraq and Syria against an Iran-backed militia group, even as US&nbsp;officials warned "additional actions" may be taken.

West Texas Intermediate (<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">WTI</a>) crude futures edged up 5 cents to $61.77 a barrel by 0529 GMT. The US&nbsp;benchmark is up about 36&nbsp;per cent&nbsp;so far this year.

Brent crude futures were at $68.36 a barrel, up 20 cents, or 0.3 per cent. The international benchmark has risen around 27 per cent&nbsp;in 2019.

"(Trading) has been relatively flat due to lack of market participants in the holiday season," said market analyst Margaret Yang of CMC Markets.

"Oil prices have reached their highest level since the Saudi oil field attack in Mid Sep, and thus traders are also cautious about profit-taking possibilities," she added.

On Sunday, China's Commerce Ministry said it is in close touch with the United States on the signing of a long-awaited trade deal.

The two countries on December&nbsp;13 announced a "Phase one" agreement that reduces some US&nbsp;tariffs in exchange for what US&nbsp;officials said would be a big jump in Chinese purchases of American farm products and other goods.

Oil prices were also supported by declining US&nbsp;crude stocks which fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll.

In the Middle East, the United States carried out air strikes on Sunday in Iraq and Syria against the Kataib Hezbollah militia group, while protesters in Iraq on Saturday forced the closure of its southern Nassiriya oilfield.

US&nbsp;officials said the air strikes in response to the killing of a US&nbsp;civilian contractor in a rocket attack on an Iraqi military base were successful but warned that "additional actions" may still be taken.

Iraq's oil ministry said the production halt at the Nassiriya oilfield will not affect the country's exports as it will use the additional output from southern oilfields in Basra.

Elsewhere, Libyan state oil firm NOC said it is considering the closure of its western Zawiya port and evacuating staff from the refinery located there due to clashes nearby.

However, the holiday season meant "oil will continue to struggle for meaningful moves," said Edward Moya, analyst at brokerage OANDA.

Oil prices traded at three-month highs on Monday, underpinned by optimism over an expected US-China trade deal, while traders kept a close eye on the Middle East following a US airstrike.

Oil prices traded at three-month highs on Monday, underpinned by optimism over an expected US-China trade deal, while traders kept a close eye on the Middle East following a US airstrike. Markets showed little initial reaction to news of the US strikes in Iraq and Syria against an Iran-backed militia group, even as US officials warned "additional actions" may be taken. West Texas Intermediate (WTI) crude futures edged up 5 cents to $61.77 a barrel by 0529 GMT. The US benchmark is up about 36 per cent so far this year. Brent crude futures were at $68.36 a barrel, up 20 cents, or 0.3 per cent. The international benchmark has risen around 27 per cent in 2019. "(Trading) has been relatively flat due to lack of market participants in the holiday season," said market analyst Margaret Yang of CMC Markets. "Oil prices have reached their highest level since the Saudi oil field attack in Mid Sep, and thus traders are also cautious about profit-taking possibilities," she added. On Sunday, China's Commerce Ministry said it is in close touch with the United States on the signing of a long-awaited trade deal. The two countries on December 13 announced a "Phase one" agreement that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods. Oil prices were also supported by declining US crude stocks which fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll. In the Middle East, the United States carried out air strikes on Sunday in Iraq and Syria against the Kataib Hezbollah militia group, while protesters in Iraq on Saturday forced the closure of its southern Nassiriya oilfield. US officials said the air strikes in response to the killing of a US civilian contractor in a rocket attack on an Iraqi military base were successful but warned that "additional actions" may still be taken. Iraq's oil ministry said the production halt at the Nassiriya oilfield will not affect the country's exports as it will use the additional output from southern oilfields in Basra. Elsewhere, Libyan state oil firm NOC said it is considering the closure of its western Zawiya port and evacuating staff from the refinery located there due to clashes nearby. However, the holiday season meant "oil will continue to struggle for meaningful moves," said Edward Moya, analyst at brokerage OANDA.

Oil edges up on trade optimism, eyes on Middle East tensions

<a href="https://www.wionews.com/business-economy/oil-eases-but-supported-by-trade-deal-hopes-269679">Oil&nbsp;prices</a>&nbsp;edged&nbsp;higher&nbsp;on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to&nbsp;support&nbsp;the market would continue and as analysts&nbsp;forecast&nbsp;a second weekly decline in <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">US&nbsp;crude inventories</a>.

Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US&nbsp;West Texas Intermediate was 1 cent&nbsp;higher&nbsp;at $60.53 a barrel.

OPEC, Russia and other producers that have linked up to curtail production and&nbsp;support&nbsp;prices&nbsp;will continue their cooperation as long as it is "effective and brings results," Russian energy minister <a href="https://www.wionews.com/business-economy/opec-and-allies-prepare-to-deepen-oil-output-cuts-266447">Alexander Novak</a> said in an interview on Monday.

Cooperation with the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC</a>) would continue "until the market requires it," Novak added.

OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent&nbsp;of global demand.

Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of&nbsp;oil&nbsp;market research at Rystad Energy said in a note.

"The OPEC&nbsp;cuts&nbsp;didn't fully solve the problem&nbsp;instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply."

US&nbsp;producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November.

That has helped swell inventories, which have been stubbornly resistant to drawdowns. US&nbsp;stocks are up around 1 per cent&nbsp;this year.

Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary&nbsp;poll.

Still, <a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">gasoline stocks</a> are expected to have risen for a seventh week in a row and distillate inventories are&nbsp;forecast&nbsp;to have gained for a fifth consecutive week.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories. Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US West Texas Intermediate was 1 cent higher at $60.53 a barrel. OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is "effective and brings results," Russian energy minister Alexander Novak said in an interview on Monday. Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue "until the market requires it," Novak added. OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent of global demand. Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of oil market research at Rystad Energy said in a note. "The OPEC cuts didn't fully solve the problem instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply." US producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November. That has helped swell inventories, which have been stubbornly resistant to drawdowns. US stocks are up around 1 per cent this year. Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary poll. Still, gasoline stocks are expected to have risen for a seventh week in a row and distillate inventories are forecast to have gained for a fifth consecutive week.

Oil prices inch higher in pre-Christmas trading

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets.

Brent crude futures edged up 8 cents to $66.25 a barrel by 0645 GMT, while US&nbsp;West Texas Intermediate (WTI) crude gained 4 cents to $60.97. Trading volume was thin, with not even news of President <a href="https://www.wionews.com/opinions/donald-trumps-attitude-towards-india-unpredictable-unreliable-238560">Donald Trump</a>'s impeachment by the US&nbsp;House of Representatives stirring the oil market.

"We're near the top of trading ranges for both Brent and WTI so it's interesting to see them holding here," said Michael McCarthy, chief market analyst at CMC Markets in Sydney.

While there is a clear uptrend in place on the daily technical price chart for<a href="https://www.wionews.com/business-economy/international-oil-prices-stabilise-as-opec-production-cut-looms-178478"> WTI</a> to potentially move towards $61.50 a barrel, there are also near-term risks - touching that price level may encourage traders to sell, McCarthy said.

"(Trading) volumes are terrible. A lot of people have given up for the year with no scheduled events to push oil markets around," he said.

The trend leaves oil prices set to rise for a third consecutive week, surfing momentum from announcements this month about deeper output cuts by major producers as well as the 'Phase One' deal between the United States and China to resolve their long-running trade war.

The deal between the world's two largest economies has improved the global economic outlook, lifted the prospect for higher energy demand next year and underpinned oil prices.

In a further sign of thawing relations, China's finance ministry on Thursday published a new list of six US products that will be exempt from tariffs starting December&nbsp;26.

Just the week before, the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">OPEC</a>) and non-OPEC producers such as Russia agreed to deepen production cuts by a further 500,000 barrels per day (bpd) from January 1 on top of previous reductions of 1.2 million bpd.

According to weekly data released by the Energy Information Administration on Wednesday, US&nbsp;crude inventories dropped 1.1 million barrels in the week to December&nbsp;13, while gasoline and distillate stockpiles rose.

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets.

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets. Brent crude futures edged up 8 cents to $66.25 a barrel by 0645 GMT, while US West Texas Intermediate (WTI) crude gained 4 cents to $60.97. Trading volume was thin, with not even news of President Donald Trump's impeachment by the US House of Representatives stirring the oil market. "We're near the top of trading ranges for both Brent and WTI so it's interesting to see them holding here," said Michael McCarthy, chief market analyst at CMC Markets in Sydney. While there is a clear uptrend in place on the daily technical price chart for WTI to potentially move towards $61.50 a barrel, there are also near-term risks - touching that price level may encourage traders to sell, McCarthy said. "(Trading) volumes are terrible. A lot of people have given up for the year with no scheduled events to push oil markets around," he said. The trend leaves oil prices set to rise for a third consecutive week, surfing momentum from announcements this month about deeper output cuts by major producers as well as the 'Phase One' deal between the United States and China to resolve their long-running trade war. The deal between the world's two largest economies has improved the global economic outlook, lifted the prospect for higher energy demand next year and underpinned oil prices. In a further sign of thawing relations, China's finance ministry on Thursday published a new list of six US products that will be exempt from tariffs starting December 26. Just the week before, the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers such as Russia agreed to deepen production cuts by a further 500,000 barrels per day (bpd) from January 1 on top of previous reductions of 1.2 million bpd. According to weekly data released by the Energy Information Administration on Wednesday, US crude inventories dropped 1.1 million barrels in the week to December 13, while gasoline and distillate stockpiles rose.

Oil prices surf US-China trade thaw to 3-month highs

Oil jumped above $61 a barrel on Monday, supported by <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">hints that OPEC</a> and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said.

"There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that."

Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24.

The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020.

"Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen."

OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong.

Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook.

But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday.

It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production.

"A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

Oil jumped above $61 a barrel on Monday, supported by hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand. The Organization of the Petroleum Exporting Countries and allies including Russia are expected to extend output cuts this week and could increase the size of the curb by at least 400,000 barrels per day (bpd), two sources said. "There is a discussion about a deeper cut taking place," an OPEC source said, citing forecasts of oversupply in the first six months of 2020. "There is a big stock build in the first half of the year - we need to keep an eye on that." Brent crude, the global benchmark, rose $1.13 to $61.62 a barrel by 1426 GMT. US West Texas Intermediate (WTI) crude added $1.07 to $56.24. The so-called OPEC+ group has coordinated output for three years to balance the market and support prices. Their current deal to cut supply by 1.2 million bpd started in January and expires at the end of March 2020. "Any sign of discontent between the producers will send out negative signals and will put significant downward pressure on the oil price," said Tamas Varga of oil broker PVM. "We believe this is unlikely to happen." OPEC's ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday. On Friday Brent and US crude both fell on concerns that talks to end the trade war between the United States and China, the world's two biggest oil consumers, would be disrupted by US support for protesters in Hong Kong. Oil also rose on Monday because of an unexpected return to growth in Chinese factory activity in November as domestic demand picked up on Beijing's accelerated stimulus measures. That is supportive of the oil demand outlook. But US production keeps rising, led by shale oil, filling the gaps left by OPEC. Output in September increased to a record 12.46 million bpd, the U.S. government said in a monthly report on Friday. It is not certain OPEC+ will agree this week to deepen its curbs. Some in the group are wary measures to support prices will encourage more U.S. production. "A deeper cut could boost prices, which would bring on more shale output and not help," the OPEC source said.

Oil prices jump to $61 over OPEC+ supply cut reports

<a href="https://www.wionews.com/business-economy/oil-drops-as-us-inventory-build-record-output-rekindles-supply-worries-264998">Oil prices </a>tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.&nbsp;

Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts.

"The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions.

Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes.

Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters.

The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline.

The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving.&nbsp;

Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores.&nbsp;

Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election.

This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union.

On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.

Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon.

Key figures around 1900 GMT&nbsp;

New York - Dow: DOWN 0.4 percent at 28,051.41 (close)

New York - S&amp;P 500: DOWN 0.4 percent at 3,140.98 (close)

New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close)

London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close)

Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close)

Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close)

EURO STOXX 50: FLAT at 3,703.58 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close)

Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close)

Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close)

Euro/dollar: UP at $1.1017 from $1.1009&nbsp;

Pound/dollar: UP at $1.2933 from $1.2912

Euro/pound: DOWN at 85.18 pence from 85.27

Dollar/yen: DOWN at 109.47 yen from 109.51

Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel

West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries. Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts. "The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions. Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes. Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters. The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline. The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving. Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores. Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election. This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union. On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars. Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon. Key figures around 1900 GMT New York - Dow: DOWN 0.4 percent at 28,051.41 (close) New York - S&P 500: DOWN 0.4 percent at 3,140.98 (close) New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close) London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close) Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close) Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close) EURO STOXX 50: FLAT at 3,703.58 (close) Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close) Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close) Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close) Euro/dollar: UP at $1.1017 from $1.1009 Pound/dollar: UP at $1.2933 from $1.2912 Euro/pound: DOWN at 85.18 pence from 85.27 Dollar/yen: DOWN at 109.47 yen from 109.51 Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumble ahead of OPEC meeting, global stocks fall

Oil&nbsp;prices climbed early on Friday, building on gains in the previous session after producer club&nbsp;OPEC&nbsp;hinted at making&nbsp;deeper&nbsp;cuts&nbsp;in supply while optimism was revived over&nbsp;talks&nbsp;between the United States and&nbsp;China&nbsp;to end their&nbsp;trade&nbsp;war.

International benchmark Brent crude futures were at $59.26 a barrel by 0251 GMT, up 16 cents, or 0.3 per cent, from their previous settlement. Brent settled up 1.3 per cent&nbsp;at $59.10 a barrel on Thursday.

US West Texas Intermediate (WTI) crude&nbsp;futures rose 16 cents, also up 0.3 per cent, from their last close to $53.71 per barrel. In the previous session, WTI settled 1.8 per cent&nbsp;higher at $53.55 a barrel.

On Thursday Mohammad Barkindo, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said all options were on the table, including a&nbsp;deeper&nbsp;supply cut to balance&nbsp;oil&nbsp;markets. A decision would be taken at a December meeting between the&nbsp;OPEC&nbsp;and its partners, he said.

OPEC&nbsp;lowered its 2019 global&nbsp;oil&nbsp;demand growth forecast to 0.98 million barrels per day (bpd), while leaving its 2020 demand growth estimate unchanged at 1.08 million bpd, according to&nbsp;OPEC's monthly report.

Beyond&nbsp;OPEC,&nbsp;trade&nbsp;talks&nbsp;between the United States and&nbsp;China&nbsp;also remained on the market's radar as the world's top two economies seek to resolve a more-than-a-year-long&nbsp;trade&nbsp;row that has slowed global economic growth and curbed fuel consumption.

"Oil&nbsp;bought into the upbeat tone from the bilateral&nbsp;talks&nbsp;as well, for better or for worse, and was also boosted by fighting talk on prices by the&nbsp;OPEC&nbsp;secretary-general," said Jeffrey Halley, a senior market analyst at OANDA in Singapore.

Top&nbsp;US&nbsp;and Chinese negotiators wrapped up the first of two days of <a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">scheduled&nbsp;trade&nbsp;talks&nbsp;on Thursday,</a> with business groups&nbsp;expressing optimism that the two sides might be able to ease tensions and delay a&nbsp;US&nbsp;tariff hike set for next week.

"The United States is the largest global consumer of&nbsp;oil&nbsp;while&nbsp;China, the biggest driver of year-on-year&nbsp;oil&nbsp;demand growth," said Stephen Innes, Asia Pacific market strategist at AxiTrader.

"The most significant sentiment driver hinges on the outcome of the&nbsp;trade&nbsp;talks&nbsp;which, if (they) end on a positive note, could go along way to begin to repair the economic damage done ... these economic powerhouses would need more&nbsp;oil," said Innes.

US&nbsp;President Donald Trump is set to meet Chinese Vice Premier Liu He at 1845 GMT on Friday, the White House said.

Oil prices climbed early on Friday, building on gains in the previous session after producer club OPEC hinted at making deeper cuts in supply while optimism was revived over talks between the United States and China to end their trade war.

Oil prices climbed early on Friday, building on gains in the previous session after producer club OPEC hinted at making deeper cuts in supply while optimism was revived over talks between the United States and China to end their trade war. International benchmark Brent crude futures were at $59.26 a barrel by 0251 GMT, up 16 cents, or 0.3 per cent, from their previous settlement. Brent settled up 1.3 per cent at $59.10 a barrel on Thursday. US West Texas Intermediate (WTI) crude futures rose 16 cents, also up 0.3 per cent, from their last close to $53.71 per barrel. In the previous session, WTI settled 1.8 per cent higher at $53.55 a barrel. On Thursday Mohammad Barkindo, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said all options were on the table, including a deeper supply cut to balance oil markets. A decision would be taken at a December meeting between the OPEC and its partners, he said. OPEC lowered its 2019 global oil demand growth forecast to 0.98 million barrels per day (bpd), while leaving its 2020 demand growth estimate unchanged at 1.08 million bpd, according to OPEC's monthly report. Beyond OPEC, trade talks between the United States and China also remained on the market's radar as the world's top two economies seek to resolve a more-than-a-year-long trade row that has slowed global economic growth and curbed fuel consumption. "Oil bought into the upbeat tone from the bilateral talks as well, for better or for worse, and was also boosted by fighting talk on prices by the OPEC secretary-general," said Jeffrey Halley, a senior market analyst at OANDA in Singapore. Top US and Chinese negotiators wrapped up the first of two days of scheduled trade talks on Thursday, with business groups expressing optimism that the two sides might be able to ease tensions and delay a US tariff hike set for next week. "The United States is the largest global consumer of oil while China, the biggest driver of year-on-year oil demand growth," said Stephen Innes, Asia Pacific market strategist at AxiTrader. "The most significant sentiment driver hinges on the outcome of the trade talks which, if (they) end on a positive note, could go along way to begin to repair the economic damage done ... these economic powerhouses would need more oil," said Innes. US President Donald Trump is set to meet Chinese Vice Premier Liu He at 1845 GMT on Friday, the White House said.

Oil rises on hopes for deeper OPEC output cuts, US-China trade talks

Oil prices surged more than two per cent Friday after an <a href="https://www.wionews.com/world/iranian-oil-tanker-hit-by-suspected-missile-strikes-claims-ship-owner-255181">Iranian tanker</a> was hit by suspected <a href="https://www.wionews.com/world/explosion-sets-ablaze-iranian-oil-tanker-near-saudi-port-report-255149">missile strikes</a> near Saudi Arabia, sparking fresh supply concerns with tensions already high after last month's attacks on two Saudi crude facilities.

The National Iranian Tanker Company, which owns the ship, said the hull of the Sabiti was hit by two separate explosions off the Saudi coast, saying they were "probably caused by missile strikes".

The news sent Brent surging 2.3 per cent to $60.46, while West Texas Intermediate jumped 2.1 per cent to $54.69. Prices had already been rising on growing hopes for a breakthrough in the China-US trade talks.

The blasts come just weeks after two of Saudi Arabia's biggest oil installations were hit, wiping out five per cent of global production. That caused a record rise in prices for both main contracts, though they have since subsided.

They will also revive concerns about the security of the world's crude supplies as tensions in the tinderbox Gulf region are already high, with Riyadh and the United States accusing Iran of being behind last month's attacks.

Tehran-back Huthi rebels in Yemen have officially claimed responsibility.

Tensions have been running high for months with ships attacked in the region, drones downed and oil tankers seized.

Oil prices surged more than two per cent Friday after an Iranian tanker was hit by suspected missile strikes near Saudi Arabia, sparking fresh supply concerns with tensions already high after last month's attacks on two Saudi crude facilities.

Oil prices surged more than two per cent Friday after an Iranian tanker was hit by suspected missile strikes near Saudi Arabia, sparking fresh supply concerns with tensions already high after last month's attacks on two Saudi crude facilities. The National Iranian Tanker Company, which owns the ship, said the hull of the Sabiti was hit by two separate explosions off the Saudi coast, saying they were "probably caused by missile strikes". The news sent Brent surging 2.3 per cent to $60.46, while West Texas Intermediate jumped 2.1 per cent to $54.69. Prices had already been rising on growing hopes for a breakthrough in the China-US trade talks. The blasts come just weeks after two of Saudi Arabia's biggest oil installations were hit, wiping out five per cent of global production. That caused a record rise in prices for both main contracts, though they have since subsided. They will also revive concerns about the security of the world's crude supplies as tensions in the tinderbox Gulf region are already high, with Riyadh and the United States accusing Iran of being behind last month's attacks. Tehran-back Huthi rebels in Yemen have officially claimed responsibility. Tensions have been running high for months with ships attacked in the region, drones downed and oil tankers seized.

Oil prices jump after Iranian oil tanker damaged by explosions near Saudi Arabia

Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war.

Brent crude futures edged down 28 cents to $58.09 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude was at $52.64, down 17 cents.

Both contracts ended last week with a more-than-5% decline after dismal manufacturing data from the United States and China, as the lingering row between the world's top economies hurts global growth and raises the risk of recession.

US and Chinese officials will meet in Washington on October 10-11 in the next, much-anticipated fresh effort to work out a deal.

On the supply side, a faster-than-expected resumption in Saudi Arabia's production after a September 14 attack on key production facilities also exerted downward pressure on oil prices, although the Middle East remained tense.

"The macro headwinds outweigh supply concerns for oil now, despite tensions in the Middle East and a reduced spare capacity pillow," said Stephen Innes, Asia Pacific market strategist at AxiCorp.

In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi's year-old government.

Iraq's oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group's practice head for Middle East and North Africa, said in a note.

"Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity)," he said.

"While Saudi oil production is now close to 9.9 million bpd, it is not clear that the capacity is fully operational at 11.3 million bpd and the (attacked) Abqaiq facility has lost a significant part of its redundancy."

Global supply also faces facility repair and maintenance pressures.

The Buzzard oil field in the British North Sea has been shut for pipe repair work, a spokesman from China's CNOOC said on Friday. Buzzard is the main contributor to the Forties crude stream, the largest of the five North Sea oil grades that underpin Brent crude futures.

Meanwhile Libya's National Oil Corporation (NOC) said on Sunday it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until October 14.

Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war.

Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war. Brent crude futures edged down 28 cents to $58.09 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude was at $52.64, down 17 cents. Both contracts ended last week with a more-than-5% decline after dismal manufacturing data from the United States and China, as the lingering row between the world's top economies hurts global growth and raises the risk of recession. US and Chinese officials will meet in Washington on October 10-11 in the next, much-anticipated fresh effort to work out a deal. On the supply side, a faster-than-expected resumption in Saudi Arabia's production after a September 14 attack on key production facilities also exerted downward pressure on oil prices, although the Middle East remained tense. "The macro headwinds outweigh supply concerns for oil now, despite tensions in the Middle East and a reduced spare capacity pillow," said Stephen Innes, Asia Pacific market strategist at AxiCorp. In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi's year-old government. Iraq's oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group's practice head for Middle East and North Africa, said in a note. "Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity)," he said. "While Saudi oil production is now close to 9.9 million bpd, it is not clear that the capacity is fully operational at 11.3 million bpd and the (attacked) Abqaiq facility has lost a significant part of its redundancy." Global supply also faces facility repair and maintenance pressures. The Buzzard oil field in the British North Sea has been shut for pipe repair work, a spokesman from China's CNOOC said on Friday. Buzzard is the main contributor to the Forties crude stream, the largest of the five North Sea oil grades that underpin Brent crude futures. Meanwhile Libya's National Oil Corporation (NOC) said on Sunday it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until October 14.

Oil prices on ebb tide as gloom gathers over global economy

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US&nbsp;jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions.

Benchmark Brent crude rose 94 cents, or 1.6 per cent, to $58.65 a barrel by 1319 GMT. US&nbsp;West Texas Intermediate (WTI) crude rose 68 cents, or 1.3 per cent, to $53.13.

However, Brent was down 5.2 per cent on the week, its lowest since mid-August, and US&nbsp;crude lost 5 per cent&nbsp;on the week, marking its biggest weekly loss since July.

"Both are on track for hefty weekly losses and it will take a brave man to bet against the bearish side," said Stephen Brennock of oil broker PVM.

"As things stand, demand and supply-side developments are anything but supportive and there can be no happy ending for those of a bullish disposition."

US&nbsp;job growth increased moderately in September, with the unemployment rate dropping to near a 50-year low of 3.5 per cent.

The report, however, came on the heels of a string of weak economic reports, including a plunge in manufacturing activity to more than a 10-year low in September and a sharp slowdown in services industry growth to levels last seen in 2016.

"The crisis in the manufacturing sector now appears to be spilling over to the previously robust services sector. This is not good news for oil demand. After all, this also reduces the demand for transport," said Carsten Fritsch, senior commodity analyst at Commerzbank.

On the supply side, Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said on Thursday the world's top crude oil exporter had <a href="https://www.wionews.com/world/saudi-arabia-restores-full-oil-output-after-attacks-focused-on-aramco-ipo-253556">fully restored oil output</a> after attacks on its facilities last month knocked out more than 5 per cent&nbsp;of global oil supply.

"That Saudi restored its production back to original capacity sooner than expected means investors had to price out raised supply risks at a faster clip than would have otherwise been the case," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.

Razaqzada that weak economic data, particularly from the US&nbsp;manufacturing sector, also raised fears for oil demand, "but now that some of these factors have been priced in, oil prices may fall less sharply going forward or at best start to form a base".

France said Iran and the United States have one month to get to the negotiating table, suggesting that Tehran's plan to increase its nuclear activities in November would spark renewed tension in the region.

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions.

Oil prices rose on Friday, although remained on track for a second consecutive weekly loss, as an increase in US jobs eased financial market concerns that the slowing economy was on the brink of a recession amid lingering trade tensions. Benchmark Brent crude rose 94 cents, or 1.6 per cent, to $58.65 a barrel by 1319 GMT. US West Texas Intermediate (WTI) crude rose 68 cents, or 1.3 per cent, to $53.13. However, Brent was down 5.2 per cent on the week, its lowest since mid-August, and US crude lost 5 per cent on the week, marking its biggest weekly loss since July. "Both are on track for hefty weekly losses and it will take a brave man to bet against the bearish side," said Stephen Brennock of oil broker PVM. "As things stand, demand and supply-side developments are anything but supportive and there can be no happy ending for those of a bullish disposition." US job growth increased moderately in September, with the unemployment rate dropping to near a 50-year low of 3.5 per cent. The report, however, came on the heels of a string of weak economic reports, including a plunge in manufacturing activity to more than a 10-year low in September and a sharp slowdown in services industry growth to levels last seen in 2016. "The crisis in the manufacturing sector now appears to be spilling over to the previously robust services sector. This is not good news for oil demand. After all, this also reduces the demand for transport," said Carsten Fritsch, senior commodity analyst at Commerzbank. On the supply side, Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said on Thursday the world's top crude oil exporter had fully restored oil output after attacks on its facilities last month knocked out more than 5 per cent of global oil supply. "That Saudi restored its production back to original capacity sooner than expected means investors had to price out raised supply risks at a faster clip than would have otherwise been the case," said Fawad Razaqzada, market analyst at futures brokerage Forex.com. Razaqzada that weak economic data, particularly from the US manufacturing sector, also raised fears for oil demand, "but now that some of these factors have been priced in, oil prices may fall less sharply going forward or at best start to form a base". France said Iran and the United States have one month to get to the negotiating table, suggesting that Tehran's plan to increase its nuclear activities in November would spark renewed tension in the region.

Oil rises on fall in US unemployment rate

Equity benchmark indices were largely flat during early hours on Wednesday despite positive global cues as crude oil prices cooled.

At 10:15 am, the BSE S&amp;P Sensex was up by 19 points to 36,500 while the Nifty 50 was down by 7 points to 10,811.

At the National Stock Exchange, sectoral indices were mixed with Nifty auto down by 0.9 per cent FMCG by 0.3 per cent and pharma by 0.1 per cent. Nifty bank, financial service, IT, media and metal showed small gains.

Auto majors traded with a bearish bias and Maruti down by 1.5 per cent, Hero MotoCorp by 0.8 per cent, Eicher Motors by 0.7 per cent and Bajaj Auto by 0.4 per cent.

Britannia lost by 2.8 per cent while UPL was down by 2.7 per cent. The other prominent losers were Cipla, Coal India, Hindustan Lever and NTPC.

However, those which showed marginal gains were Bajaj Finance, Bajaj Finserv, Tata Steel, JSW Steel, Reliance Industries and Vedanta. Government-owned oil marketing firms Bharat Petroleum Corporation and IndianOil Corporation too were in the green.

Meanwhile, Asian markets were mixed as oil prices cooled after Saudi Arabia said full oil production will be restored by month's end.

A day earlier, investor sentiment had taken a beating following Saturday's attack on Saudi oil facilities which halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since 1979,

On Wednesday, MSCI's broadest index of Asia Pacific shares outside Japan was up by 0.13 per cent while Japan's Nikkei was flat.

Investors also awaited announcements on an expected interest rate cut from the US Federal Reserve and the next round of US-China trade talks later this week.

Equity benchmark indices were largely flat during early hours on Wednesday despite positive global cues as crude oil prices cooled. At 10:15 am, the BSE S&P Sensex was up by 19 points to 36,500 while the Nifty 50 was down by 7 points to 10,811.

Equity benchmark indices were largely flat during early hours on Wednesday despite positive global cues as crude oil prices cooled. At 10:15 am, the BSE S&P Sensex was up by 19 points to 36,500 while the Nifty 50 was down by 7 points to 10,811. At the National Stock Exchange, sectoral indices were mixed with Nifty auto down by 0.9 per cent FMCG by 0.3 per cent and pharma by 0.1 per cent. Nifty bank, financial service, IT, media and metal showed small gains. Auto majors traded with a bearish bias and Maruti down by 1.5 per cent, Hero MotoCorp by 0.8 per cent, Eicher Motors by 0.7 per cent and Bajaj Auto by 0.4 per cent. Britannia lost by 2.8 per cent while UPL was down by 2.7 per cent. The other prominent losers were Cipla, Coal India, Hindustan Lever and NTPC. However, those which showed marginal gains were Bajaj Finance, Bajaj Finserv, Tata Steel, JSW Steel, Reliance Industries and Vedanta. Government-owned oil marketing firms Bharat Petroleum Corporation and IndianOil Corporation too were in the green. Meanwhile, Asian markets were mixed as oil prices cooled after Saudi Arabia said full oil production will be restored by month's end. A day earlier, investor sentiment had taken a beating following Saturday's attack on Saudi oil facilities which halved the kingdom's oil output, creating the biggest disruption to global oil supplies in absolute terms since 1979, On Wednesday, MSCI's broadest index of Asia Pacific shares outside Japan was up by 0.13 per cent while Japan's Nikkei was flat. Investors also awaited announcements on an expected interest rate cut from the US Federal Reserve and the next round of US-China trade talks later this week.

Equity gauges flat in volatile trading, auto stocks lose further

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday.

Suheil al-Mazrouei warned however that with the <a href="https://www.wionews.com/opinions/us-china-trade-conflict-lack-of-trust-hobbling-the-ability-to-reach-a-deal-198533">US-China trade row</a> hanging over the world economy, additional output cuts may not be the best way to boost sagging prices.

Deeper production cuts are "not a decision that we take easily," the minister said ahead of the four-day World Energy Congress starting Monday in Abu Dhabi, where a key meeting of oil ministers will also be held on Thursday.

Mazrouei told a press conference that oil producers were affected by "other concerns" apart from supply and demand.

"Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said.

"But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions."

The Joint Ministerial Monitoring Committee (JMMC), created by an alliance of OPEC oil cartel members and other crude exporters, is scheduled to meet on Thursday to assess the oil market.

European benchmark Brent was selling at $61.54 per barrel on Friday, down from more than $75 this time last year.

OPEC+, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, has resorted to massive production cuts to lift prices since the oil market crash in mid-2014.

In June, the group extended by nine months an earlier reduction of 1.2 million barrels per day, but the move has failed to arrest the price decline in light of a faltering global economy.

The one-day JMMC meeting is not set to make decisions but will assess the market and make recommendations to the next full ministerial meeting, to be held in December.

Mazrouei noted that the usual levers to control prices seemed to be having little effect.

The oil market is being affected by factors beyond "supply and demand... which is the main thing that we can control," he said.

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday.

Oil producers will do "whatever necessary" to rebalance a crude market depressed by trade tensions and an uncertain global outlook, the United Arab Emirates' energy minister said Sunday. Suheil al-Mazrouei warned however that with the US-China trade row hanging over the world economy, additional output cuts may not be the best way to boost sagging prices. Deeper production cuts are "not a decision that we take easily," the minister said ahead of the four-day World Energy Congress starting Monday in Abu Dhabi, where a key meeting of oil ministers will also be held on Thursday. Mazrouei told a press conference that oil producers were affected by "other concerns" apart from supply and demand. "Anything that the group sees that will balance the market, we are committed to discuss it and hopefully go and do whatever necessary," he said. "But I wouldn't suggest to jump to cuts every time that we have an issue on trade tensions." The Joint Ministerial Monitoring Committee (JMMC), created by an alliance of OPEC oil cartel members and other crude exporters, is scheduled to meet on Thursday to assess the oil market. European benchmark Brent was selling at $61.54 per barrel on Friday, down from more than $75 this time last year. OPEC+, dominated by the cartel's kingpin Saudi Arabia and non-OPEC production giant Russia, has resorted to massive production cuts to lift prices since the oil market crash in mid-2014. In June, the group extended by nine months an earlier reduction of 1.2 million barrels per day, but the move has failed to arrest the price decline in light of a faltering global economy. The one-day JMMC meeting is not set to make decisions but will assess the market and make recommendations to the next full ministerial meeting, to be held in December. Mazrouei noted that the usual levers to control prices seemed to be having little effect. The oil market is being affected by factors beyond "supply and demand... which is the main thing that we can control," he said.

Oil nations to do 'whatever necessary' to balance market: UAE

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from <a href="https://www.wionews.com/business-economy/oil-prices-pegged-back-by-mounting-concern-over-us-economy-246329">China's services sector</a>, after three days of losses due to fears about a weakening global economy.

Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US&nbsp;West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel.

Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year.

China is the world's second-largest oil consumer and largest importer.

But US&nbsp;President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US&nbsp;recession.

US&nbsp;data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month.

Some analysts argued that the overall fundamentals of the oil market remained discouraging.

"The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said.

Data due this week on US&nbsp;oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US&nbsp;Labor Day holiday on Monday.

US&nbsp;crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday.

"Crude oil remains troubled by reports that production from OPEC, Russia and the US&nbsp;all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said.

But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry.

In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero.

The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy.

Oil prices rose nearly 3 per cent on Wednesday, boosted by a wider market pickup on positive news from China's services sector, after three days of losses due to fears about a weakening global economy. Brent crude was up $1.55, or 2.66 per cent, at $59.81 a barrel by 1401 GMT, while US West Texas Intermediate futures gained $1.56, or 2.66 per cent, to $55.50 a barrel. Global markets rebounded after a private survey showed that activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in more than a year. China is the world's second-largest oil consumer and largest importer. But US President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that trade disputes between the two countries could trigger a US recession. US data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month. Some analysts argued that the overall fundamentals of the oil market remained discouraging. "The bullish bandwagon seen earlier this year will not be making another appearance," Stephen Brennock of oil broker PVM said. Data due this week on US oil inventory levels will be delayed by a day to Wednesday and Thursday because of the US Labor Day holiday on Monday. US crude stockpiles are expected to have declined for a third straight week, a Reuters poll showed on Tuesday. "Crude oil remains troubled by reports that production from OPEC, Russia and the US all rose last month. This (comes) at a time when the strength of demand growth, due to trade war pessimism, has increasingly been called into question," Saxo Bank commodity strategist Ole Hansen said. But supply looks set to stay constrained as Russian officials and OPEC sources indicated the countries would remain committed to their agreement to rein in production despite a shake-up in Saudi Arabia's oil industry. In a possible sign of tension easing in the energy-rich Gulf, Iranian state television reported on Wednesday that Tehran would free seven crew members of the detained British-flagged tanker Stena Impero. The vessel was seized two weeks after Britain detained an Iranian tanker off the territory of Gibraltar which was released in August.

Oil prices rise nearly 3% on China service sector expansion

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of US economy.

Brent crude was down 30 cents, or 0.5%, at $60.19 a barrel by 0202 GMT while US crude was down 15 cents, or 0.3%, at $55.63 a barrel. Oil prices rose around 1.5 per cent in the previous session.

Concerns about a slowdown in economic growth due to the trade war raging between the United States and China, along with the potential hit to oil demand, are keeping prices in check.

Daly said on Thursday she believes the US economy has "strong" momentum, but uncertainty and a global growth slowdown are having an impact.

Daly was speaking to reporters after a speech in Wellington, New Zealand and said she was in "watch and see" mode in assessing the need for another US interest-rate cut.

US President Donald Trump said on Monday he believed China was sincere about wanting to reach a trade deal, but concerns arose on Tuesday after China's foreign ministry declined to confirm a telephone call between the two countries on trade.

"Trade tensions (are) hanging like a dark cloud threatening to rain over oil prices," said Jeffrey Halley, senior market analyst at OANDA.

The market shrugged of a big drop in US inventories, which fell last week by 10 million barrels, compared with analysts' expectations for a decrease of 2.1 million barrels, the Energy Information Administration said.

US gasoline stocks fell by 2.1 million barrels, compared with analysts' expectations in a Reuters poll for a 388,000-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell by 2.1 million barrels, versus expectations for a 918,000-barrel increase, the EIA data showed.

The crude drawdown confirms "that OPEC supply cuts are effectively working by depleting US reserves," said Stephen Innes, managing partner at Valour Markets.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been restraining supply for most of the period since January 1, 2017. The alliance, known as "OPEC+", in July renewed the pact until March 2020.

US weekly crude production also rose 200,000 barrels per day to a new record at 12.5 million bpd in the week to August 23.

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of US economy.

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of US economy. Brent crude was down 30 cents, or 0.5%, at $60.19 a barrel by 0202 GMT while US crude was down 15 cents, or 0.3%, at $55.63 a barrel. Oil prices rose around 1.5 per cent in the previous session. Concerns about a slowdown in economic growth due to the trade war raging between the United States and China, along with the potential hit to oil demand, are keeping prices in check. Daly said on Thursday she believes the US economy has "strong" momentum, but uncertainty and a global growth slowdown are having an impact. Daly was speaking to reporters after a speech in Wellington, New Zealand and said she was in "watch and see" mode in assessing the need for another US interest-rate cut. US President Donald Trump said on Monday he believed China was sincere about wanting to reach a trade deal, but concerns arose on Tuesday after China's foreign ministry declined to confirm a telephone call between the two countries on trade. "Trade tensions (are) hanging like a dark cloud threatening to rain over oil prices," said Jeffrey Halley, senior market analyst at OANDA. The market shrugged of a big drop in US inventories, which fell last week by 10 million barrels, compared with analysts' expectations for a decrease of 2.1 million barrels, the Energy Information Administration said. US gasoline stocks fell by 2.1 million barrels, compared with analysts' expectations in a Reuters poll for a 388,000-barrel drop. Distillate stockpiles, which include diesel and heating oil, fell by 2.1 million barrels, versus expectations for a 918,000-barrel increase, the EIA data showed. The crude drawdown confirms "that OPEC supply cuts are effectively working by depleting US reserves," said Stephen Innes, managing partner at Valour Markets. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers have been restraining supply for most of the period since January 1, 2017. The alliance, known as "OPEC+", in July renewed the pact until March 2020. US weekly crude production also rose 200,000 barrels per day to a new record at 12.5 million bpd in the week to August 23.

Oil prices pegged back by mounting concern over US economy

Oil prices rose on Wednesday, with US crude gaining 1.3% after an industry report showed stockpiles in the United States, the world's biggest oil user, fell more than expected, easing worries about economic growth due to the China-US trade war.

Brent crude futures climbed 59 cents, or 1.0%, to $60.10 a barrel by 0652 GMT. West Texas Intermediate (WTI) crude futures gained 70 cents, or 1.3%, to $55.63 a barrel.

US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million-barrel draw, data from industry group the American Petroleum Institute (API), showed.

The US government's weekly report is due Wednesday morning and if the official numbers confirm the API data then it will be the biggest weekly decline in nine weeks.

"The mammoth crude inventory draw has, at least for the time being, put to rest those US recessionary doom and gloom fears that have been hanging over oil markets like a dark cloud," said Stephen Innes, managing partner at Valour Markets.

Still, concerns about global growth amid the raging trade war between the United States and China, the world's two biggest crude oil consumers, are likely to cap gains.

US President Donald Trump said on Monday that he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations.

On Tuesday, however, concerns about trade resurfaced after China's foreign ministry said it had not heard of any recent telephone call between the United States and China on trade, and that it hopes Washington can stop its wrong actions and create conditions for talks.

Crude oil prices have fallen about 20% from 2019 highs hit in April, partly because of worries that the US-China trade war is hurting the global economy and could dent oil demand.

"Global recession risks are higher than at any stage since the (global financial crisis) and the US is not immune," Morgan Stanley said.

China's Commerce Ministry last week said it would impose additional tariffs of 5% or 10% on 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft.

In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

Oil prices rose on Wednesday, with US crude gaining 1.3% after an industry report showed stockpiles in the United States, the world's biggest oil user, fell more than expected, easing worries about economic growth due to the China-US trade war.

Oil prices rose on Wednesday, with US crude gaining 1.3% after an industry report showed stockpiles in the United States, the world's biggest oil user, fell more than expected, easing worries about economic growth due to the China-US trade war. Brent crude futures climbed 59 cents, or 1.0%, to $60.10 a barrel by 0652 GMT. West Texas Intermediate (WTI) crude futures gained 70 cents, or 1.3%, to $55.63 a barrel. US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million-barrel draw, data from industry group the American Petroleum Institute (API), showed. The US government's weekly report is due Wednesday morning and if the official numbers confirm the API data then it will be the biggest weekly decline in nine weeks. "The mammoth crude inventory draw has, at least for the time being, put to rest those US recessionary doom and gloom fears that have been hanging over oil markets like a dark cloud," said Stephen Innes, managing partner at Valour Markets. Still, concerns about global growth amid the raging trade war between the United States and China, the world's two biggest crude oil consumers, are likely to cap gains. US President Donald Trump said on Monday that he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations. On Tuesday, however, concerns about trade resurfaced after China's foreign ministry said it had not heard of any recent telephone call between the United States and China on trade, and that it hopes Washington can stop its wrong actions and create conditions for talks. Crude oil prices have fallen about 20% from 2019 highs hit in April, partly because of worries that the US-China trade war is hurting the global economy and could dent oil demand. "Global recession risks are higher than at any stage since the (global financial crisis) and the US is not immune," Morgan Stanley said. China's Commerce Ministry last week said it would impose additional tariffs of 5% or 10% on 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft. In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

Oil rises after inventory build eases recession worries

Oil prices rose on Tuesday after US President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.

Brent crude was up by 25 cents, or 0.4%, at $58.95 a barrel by 0214 GMT, after falling 1% in the previous session, dropping for the third day in a row.

US crude was up by 30 cents or 0.6% at $53.94 a barrel, having also dropped 1% on Monday for the fourth day of declines.

Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations, settling global markets.

"For now, the street is in thrall to the President's comments, with financial markets doing abrupt changes of direction on his words that wouldn't look out of place in Fast and the Furious film," said Jeffrey Halley, senior market analyst at OANDA.

Oil prices have fallen around 20% from 2019 high reached in April, in part because of worries that the US-China trade conflict is hurting the global economy, which could dent demand for oil.

China's Commerce Ministry said last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft.

In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

"Unless you believe a trade deal will happen the slowdown in the global economy continues ... and earnings all over the globe will be under pressure," said Greg McKenna, strategist at McKenna Macro.

The measures are prompting reactions from Chinese companies, with Sinopec seeking a tariff exemption for importing US oil in the coming months, sources told Reuters.

Meanwhile, US crude oil and gasoline inventories likely fell last week, while distillate stockpiles rose, a preliminary Reuters poll showed on Monday.

Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.1 million barrels in the week to August 23.

Oil prices rose on Tuesday after US President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.

Oil prices rose on Tuesday after US President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling. Brent crude was up by 25 cents, or 0.4%, at $58.95 a barrel by 0214 GMT, after falling 1% in the previous session, dropping for the third day in a row. US crude was up by 30 cents or 0.6% at $53.94 a barrel, having also dropped 1% on Monday for the fourth day of declines. Trump on Monday said he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations, settling global markets. "For now, the street is in thrall to the President's comments, with financial markets doing abrupt changes of direction on his words that wouldn't look out of place in Fast and the Furious film," said Jeffrey Halley, senior market analyst at OANDA. Oil prices have fallen around 20% from 2019 high reached in April, in part because of worries that the US-China trade conflict is hurting the global economy, which could dent demand for oil. China's Commerce Ministry said last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft. In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States. "Unless you believe a trade deal will happen the slowdown in the global economy continues ... and earnings all over the globe will be under pressure," said Greg McKenna, strategist at McKenna Macro. The measures are prompting reactions from Chinese companies, with Sinopec seeking a tariff exemption for importing US oil in the coming months, sources told Reuters. Meanwhile, US crude oil and gasoline inventories likely fell last week, while distillate stockpiles rose, a preliminary Reuters poll showed on Monday. Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.1 million barrels in the week to August 23.

Oil rises as US-China trade comments calm markets

Oil prices fell on Monday, pushing US crude to its lowest in more than two weeks, as an intensifying US-China trade war knocked confidence in the global economy.

Brent crude was down 63 cents, or 1.1%, at $58.71 a barrel by 0232 GMT, having earlier touched $58.24, the lowest since August 15.

US oil was down 68 cents, or 1.3%, to $53.49 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9.

Concerns about an economic slowdown are being fanned by a ratcheting up of trade tensions between the United States and China.

China's commerce ministry said late last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.

In retaliation, President Donald Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

"The only thing that will lift the storm clouds over oil markets this week will be if both China and the US talk and decide to mutually take a step back," said Jeffrey Halley, market analyst at Oanda. "I can't see that happening."

US Federal Reserve chair Jerome Powell told an annual economic symposium in Jackson Hole, Wyoming that the US economy is in a "favourable place" and the Federal Reserve will "act as appropriate" to keep the current economic expansion on track."

The remarks gave few clues about whether the central bank will cut interest rates at its next meeting.

But exacerbating concern over the possibility of recession, US manufacturing industries registered their first month of contraction in almost a decade.

The Brent/WTI spread was at minus $5.24, after widening 60 cents to settle at minus $5.17 on Friday. The spread blew out after China included US oil for the first time in its tariff moves.

Hedge funds and other money managers raised their bullish wagers on US crude to a three-month high in the latest week, the US Commodity Futures Trading Commission (CFTC) said.

US energy companies cut the most oil rigs in about four months last week, with the rig count falling to the lowest since January 2018, as producers cut spending on new drilling and completions.

Oil prices fell on Monday, pushing US crude to its lowest in more than two weeks, as an intensifying US-China trade war knocked confidence in the global economy.

Oil prices fell on Monday, pushing US crude to its lowest in more than two weeks, as an intensifying US-China trade war knocked confidence in the global economy. Brent crude was down 63 cents, or 1.1%, at $58.71 a barrel by 0232 GMT, having earlier touched $58.24, the lowest since August 15. US oil was down 68 cents, or 1.3%, to $53.49 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9. Concerns about an economic slowdown are being fanned by a ratcheting up of trade tensions between the United States and China. China's commerce ministry said late last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft. In retaliation, President Donald Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States. "The only thing that will lift the storm clouds over oil markets this week will be if both China and the US talk and decide to mutually take a step back," said Jeffrey Halley, market analyst at Oanda. "I can't see that happening." US Federal Reserve chair Jerome Powell told an annual economic symposium in Jackson Hole, Wyoming that the US economy is in a "favourable place" and the Federal Reserve will "act as appropriate" to keep the current economic expansion on track." The remarks gave few clues about whether the central bank will cut interest rates at its next meeting. But exacerbating concern over the possibility of recession, US manufacturing industries registered their first month of contraction in almost a decade. The Brent/WTI spread was at minus $5.24, after widening 60 cents to settle at minus $5.17 on Friday. The spread blew out after China included US oil for the first time in its tariff moves. Hedge funds and other money managers raised their bullish wagers on US crude to a three-month high in the latest week, the US Commodity Futures Trading Commission (CFTC) said. US energy companies cut the most oil rigs in about four months last week, with the rig count falling to the lowest since January 2018, as producers cut spending on new drilling and completions.

Oil prices fall as trade war raises recession fears

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain.

"Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda.

"What we're seeing is some profit-taking in Asia in very light volumes."

A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy.

Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now.

A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors.

Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth.

However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy.

Oil prices clawed back the previous day's losses on Friday, with Brent nudging above $60 a barrel, as tighter supplies from key producers offset slowing demand growth while investors await clues from the Federal Reserve on US monetary policy. Brent crude rose 10 cents to $60.02 a barrel by 0118 GMT, while US crude futures were at $55.38 a barrel, up 3 cents. Both contracts were on track for a second weekly gain. "Oil is set to trade quietly today as it's all about the Jackson Hole (meeting) tonight," Jeffrey Halley, a Singapore-based senior market analyst at brokerage Oanda. "What we're seeing is some profit-taking in Asia in very light volumes." A speech by Federal Reserve Chair Jerome Powell later on Friday t a meeting of central bankers in Jackson Hole is expected to provide some clues on whether the Fed will cut interest rates for a second time this year to boost the US economy. Traders' expectations of further U monetary easing were clouded by comments from two Fed officials who said on Wednesday that they do not see a case for a rate cut now. A reduction in interest rates could strengthen the US dollar against other currencies and make dollar-denominated oil more costly for investors. Oil prices are down for nearly two straight months after the International Energy Agency and the Organization of Petroleum Exporting Countries cut demand growth forecasts as a simmering US-China trade war hit global economic growth. However, oil prices remained supported by production cuts from OPEC members and Russia while US sanctions have sharply reduced exports from Iran and Venezuela.

Oil prices eke out small gains ahead of Federal Reserve Chair Jerome Powell speech

Brent crude rose on Tuesday, after earlier falling to its lowest since January, as traders betting on falling prices bought back contracts to lock in profits from recent declines caused by the escalating trade dispute between the US&nbsp;and China.

Brent prices have plunged 7.6% since their close on July 31, the day before US&nbsp;President Donald Trump vowed to impose new tariffs on Chinese imports, causing China to retaliate against agricultural imports from the United States, which responded to a decline in the Chinese yuan on Monday by branding the country a currency manipulator later in the day.

Brent fell more than 3% on Monday as traders are concerned the ongoing trade dispute between the world's two biggest oil buyers will dent demand.

Brent crude futures climbed 47 cents, or 0.8%, to $60.28 a barrel by 0351 GMT after earlier dipping to $59.07, their lowest since January&nbsp;14.

West Texas Intermediate (WTI) crude futures rose 47 cents, or 0.9%, to $55.16 per barrel.

"The market is back short-covering and there's also some amount of profit-booking today," said Sukrit Vijayakar, director of Indian energy consultancy Trifecta, referring to when traders with short positions, or bets on falling prices, buy back futures to lock in profits.

The United States accused Beijing of manipulating its currency after China let the yuan drop to its lowest point in more than a decade. The falling yuan would support Chinese exports by making them cheaper but would raise the cost of oil imports that are priced in dollars. China is the world's biggest oil importer.

"Oil prices can't shake off falling demand concerns, as China's latest escalation with devaluing the yuan and limiting US&nbsp;agricultural purchases derail hopes for a trade deal to be reached this year," said Edward Moya, senior market analyst at OANDA in New York.

Concerns that the trade conflict has entered a phase of retaliatory action was weighing down on the sentiments in the oil market, which at the moment is taking lesser notice of the Middle East tensions, analysts said.

"Despite the ongoing threat of supply disruption in the Middle East, it is clear that the US-China trade dispute is of more significant concern at the moment," Stephen Innes, managing partner at VM Markets said in a note.

Iran on Monday said it will no longer tolerate "maritime offences" in the Strait of Hormuz, a day after it seized a second oil tanker near the strategic waterway that it accused of smuggling fuel.

Iran's seizure of the Iraqi oil tanker had raised some concerns about potential Middle East supply disruptions.

Oil prices may find some support later this week with a preliminary Reuters poll showing US&nbsp;crude oil inventories were expected to fall for an eighth consecutive week.

Brent crude rose on Tuesday, after earlier falling to its lowest since January, as traders betting on falling prices bought back contracts to lock in profits from recent declines caused by the escalating trade dispute between the US and China.

Brent crude rose on Tuesday, after earlier falling to its lowest since January, as traders betting on falling prices bought back contracts to lock in profits from recent declines caused by the escalating trade dispute between the US and China. Brent prices have plunged 7.6% since their close on July 31, the day before US President Donald Trump vowed to impose new tariffs on Chinese imports, causing China to retaliate against agricultural imports from the United States, which responded to a decline in the Chinese yuan on Monday by branding the country a currency manipulator later in the day. Brent fell more than 3% on Monday as traders are concerned the ongoing trade dispute between the world's two biggest oil buyers will dent demand. Brent crude futures climbed 47 cents, or 0.8%, to $60.28 a barrel by 0351 GMT after earlier dipping to $59.07, their lowest since January 14. West Texas Intermediate (WTI) crude futures rose 47 cents, or 0.9%, to $55.16 per barrel. "The market is back short-covering and there's also some amount of profit-booking today," said Sukrit Vijayakar, director of Indian energy consultancy Trifecta, referring to when traders with short positions, or bets on falling prices, buy back futures to lock in profits. The United States accused Beijing of manipulating its currency after China let the yuan drop to its lowest point in more than a decade. The falling yuan would support Chinese exports by making them cheaper but would raise the cost of oil imports that are priced in dollars. China is the world's biggest oil importer. "Oil prices can't shake off falling demand concerns, as China's latest escalation with devaluing the yuan and limiting US agricultural purchases derail hopes for a trade deal to be reached this year," said Edward Moya, senior market analyst at OANDA in New York. Concerns that the trade conflict has entered a phase of retaliatory action was weighing down on the sentiments in the oil market, which at the moment is taking lesser notice of the Middle East tensions, analysts said. "Despite the ongoing threat of supply disruption in the Middle East, it is clear that the US-China trade dispute is of more significant concern at the moment," Stephen Innes, managing partner at VM Markets said in a note. Iran on Monday said it will no longer tolerate "maritime offences" in the Strait of Hormuz, a day after it seized a second oil tanker near the strategic waterway that it accused of smuggling fuel. Iran's seizure of the Iraqi oil tanker had raised some concerns about potential Middle East supply disruptions. Oil prices may find some support later this week with a preliminary Reuters poll showing US crude oil inventories were expected to fall for an eighth consecutive week.

Oil prices rise, escalating US-China trade war caps gains

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth.

Brent crude slumped more than 7 per cent on Thursday, its steepest drop in more than three years. US crude fell nearly 8%, posting its worst day in more than four years,

The collapse ended a fragile rally built on steady drawdowns in US inventories, even as global demand looked shaky due to the trade dispute between the world's two biggest economies.

Brent was up 67 cents, or 1.1%, at $61.17 a barrel by 0049 GMT, while US crude was up 50 cents, or 0.9%, at $54.45 a barrel.

Trump said on Thursday he would impose a 10 per cent tariff on $300 billion of Chinese imports from September 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal.

The announcement extends Trump's tariffs to nearly all China's imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets.

Prices "had already been under pressure before the tariff announcement, with weak US manufacturing data raising concerns about weak demand for oil," ANZ Research said in a morning note.

US manufacturing activity slowed to a near three-year low in July and construction spending fell in June as investment in private construction projects tumbled to its lowest level in 1-1/2 years.

Total US oil demand in May fell 98,000 bpd to 20.26 million bpd, data showed earlier this week.&nbsp;

OPEC and partners including Russia, an alliance known as OPEC+, have been curbing output this year to support the market.&nbsp;

In July, OPEC production revisited a 2011 low, helped by a further cut by Saudi Arabia, a Reuters survey showed.

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth.

Oil prices rose around 1 per cent on Friday, steadying after an overnight plunge following US President Donald Trump's move to impose more tariffs on Chinese imports, intensifying a trade war that has hit global growth. Brent crude slumped more than 7 per cent on Thursday, its steepest drop in more than three years. US crude fell nearly 8%, posting its worst day in more than four years, The collapse ended a fragile rally built on steady drawdowns in US inventories, even as global demand looked shaky due to the trade dispute between the world's two biggest economies. Brent was up 67 cents, or 1.1%, at $61.17 a barrel by 0049 GMT, while US crude was up 50 cents, or 0.9%, at $54.45 a barrel. Trump said on Thursday he would impose a 10 per cent tariff on $300 billion of Chinese imports from September 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal. The announcement extends Trump's tariffs to nearly all China's imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets. Prices "had already been under pressure before the tariff announcement, with weak US manufacturing data raising concerns about weak demand for oil," ANZ Research said in a morning note. US manufacturing activity slowed to a near three-year low in July and construction spending fell in June as investment in private construction projects tumbled to its lowest level in 1-1/2 years. Total US oil demand in May fell 98,000 bpd to 20.26 million bpd, data showed earlier this week. OPEC and partners including Russia, an alliance known as OPEC+, have been curbing output this year to support the market. In July, OPEC production revisited a 2011 low, helped by a further cut by Saudi Arabia, a Reuters survey showed.

Oil prices steady after Trump trade tariffs spark plunge

Oil prices extended overnight gains on Tuesday amid widespread expectations the US Federal Reserve will cut interest rates for the first time in more than a decade this week.

Brent crude rose 30 cents, or 0.5%, to $64.01 a barrel by 0013 GMT, after gaining 0.4% the previous session.

US crude was up 34 cents or 0.6%, at $57.21 a barrel, having risen 1.2% on Monday.

Crude futures are "well bid on the back of rising expectations of a rate cut in the US," ANZ Research said in a morning note, adding that optimism over Sino-US trade talks and Middle East tensions are also supporting prices.

US central bankers will begin their two-day meeting later in the day and are expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago.

US President Donald Trump said a small rate cut "is not enough."

Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth.

US and Chinese negotiators meet this week for their first in-person talks since a G20 truce last month, with some optimistic that the discussions will help bridge the gap between the world's two largest economies.

However, Trump said China might not want to sign a trade deal until after the 2020 US election.

Supply risks are still a concern as tensions remained high around the Strait of Hormuz, through which about a fifth of the world's oil passes.

Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf this month in apparent retaliation for the capture of an Iranian tanker by British forces near Gibraltar.

Oil prices extended overnight gains on Tuesday amid widespread expectations the US Federal Reserve will cut interest rates for the first time in more than a decade this week.

Oil prices extended overnight gains on Tuesday amid widespread expectations the US Federal Reserve will cut interest rates for the first time in more than a decade this week. Brent crude rose 30 cents, or 0.5%, to $64.01 a barrel by 0013 GMT, after gaining 0.4% the previous session. US crude was up 34 cents or 0.6%, at $57.21 a barrel, having risen 1.2% on Monday. Crude futures are "well bid on the back of rising expectations of a rate cut in the US," ANZ Research said in a morning note, adding that optimism over Sino-US trade talks and Middle East tensions are also supporting prices. US central bankers will begin their two-day meeting later in the day and are expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago. US President Donald Trump said a small rate cut "is not enough." Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth. US and Chinese negotiators meet this week for their first in-person talks since a G20 truce last month, with some optimistic that the discussions will help bridge the gap between the world's two largest economies. However, Trump said China might not want to sign a trade deal until after the 2020 US election. Supply risks are still a concern as tensions remained high around the Strait of Hormuz, through which about a fifth of the world's oil passes. Tensions spiked between Iran and the West after Iranian commandos seized a British-flagged oil tanker in the Gulf this month in apparent retaliation for the capture of an Iranian tanker by British forces near Gibraltar.

Oil prices rise ahead of expected US interest rate cut

<a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">Oil prices</a> slipped on Monday after China posted its slowest quarterly economic growth in at least 27 years, reinforcing concerns about demand in the world's largest crude oil importer.

Brent crude futures for September fell 15 cents, or 0.2 per cent, to $66.57 a barrel by 0611 GMT while US crude for August was down 24 cents, or 0.4 per cent, at $59.97 a barrel. Both contracts last week posted their biggest weekly gains in three weeks on cuts in <a href="https://www.wionews.com/business-economy/oil-prices-jump-45-per-cent-on-united-states-crude-stocks-draw-gulf-of-mexico-storm-234960">US oil production</a> and diplomatic tensions in the Middle East.

Refineries in the path of Tropical Storm Barry continued to operate despite flood threats while the storm has slashed <a href="https://www.wionews.com/world/new-orleans-braces-for-flooding-trump-declares-emergency-ahead-of-storm-barry-235308">US Gulf of Mexico</a> crude output by 73per cent, or 1.38 million barrels per day.

"The supply side is keeping prices firm," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

China's economic growth slowed to 6.2 per cent in the second quarter from a year earlier, in line with analysts' expectations, with demand at home and abroad faltering as the Sino-US trade war bites.

Still, China's industrial output and retail sales beat forecasts, "suggesting that the economy in China is healthier than we previously been pricing," McCarthy said.

China's crude oil throughput rose to a record of 13.07 million barrels per day in June, up 7.7 per cent from a year earlier, following the start-up of two new, large refineries, official data showed on Monday.

ANZ analysts said China's crude oil imports year-to-date still looked impressive even as imports fell in June for a second straight month.

"We believe additional crude oil quota (given) to private refiners should keep the imports upbeat in H2 2019," the bank said.

In the Middle East, Iranian President Hassan Rouhani said in a televised speech on Sunday that Iran is ready to hold talks with the United States if Washington lifts sanctions and returns to the 2015 nuclear deal it quit last year.

Meanwhile Britain has offered to facilitate the release of the detained Iranian oil tanker Grace 1 if Tehran gave guarantees that it would not go to Syria.

"The Iran situation is also in focus. It's not making headlines but it has the potential to move markets around," CMC Markets' McCarthy said.

Oil prices slipped on Monday after China posted its slowest quarterly economic growth in at least 27 years, reinforcing concerns about demand in the world's largest crude oil importer.

Oil prices slipped on Monday after China posted its slowest quarterly economic growth in at least 27 years, reinforcing concerns about demand in the world's largest crude oil importer. Brent crude futures for September fell 15 cents, or 0.2 per cent, to $66.57 a barrel by 0611 GMT while US crude for August was down 24 cents, or 0.4 per cent, at $59.97 a barrel. Both contracts last week posted their biggest weekly gains in three weeks on cuts in US oil production and diplomatic tensions in the Middle East. Refineries in the path of Tropical Storm Barry continued to operate despite flood threats while the storm has slashed US Gulf of Mexico crude output by 73per cent, or 1.38 million barrels per day. "The supply side is keeping prices firm," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. China's economic growth slowed to 6.2 per cent in the second quarter from a year earlier, in line with analysts' expectations, with demand at home and abroad faltering as the Sino-US trade war bites. Still, China's industrial output and retail sales beat forecasts, "suggesting that the economy in China is healthier than we previously been pricing," McCarthy said. China's crude oil throughput rose to a record of 13.07 million barrels per day in June, up 7.7 per cent from a year earlier, following the start-up of two new, large refineries, official data showed on Monday. ANZ analysts said China's crude oil imports year-to-date still looked impressive even as imports fell in June for a second straight month. "We believe additional crude oil quota (given) to private refiners should keep the imports upbeat in H2 2019," the bank said. In the Middle East, Iranian President Hassan Rouhani said in a televised speech on Sunday that Iran is ready to hold talks with the United States if Washington lifts sanctions and returns to the 2015 nuclear deal it quit last year. Meanwhile Britain has offered to facilitate the release of the detained Iranian oil tanker Grace 1 if Tehran gave guarantees that it would not go to Syria. "The Iran situation is also in focus. It's not making headlines but it has the potential to move markets around," CMC Markets' McCarthy said.

Slower China Gross Domestic Product growth nudges oil prices lower

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday.

US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session.

Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth.

Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment.

Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month.

"The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto.

Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries.

Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said.

Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.

Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers.

The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices. Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday. US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session. Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth. Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment. Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month. "The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto. Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries. Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said. Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year. Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers. The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil prices drop as trade tensions stoke economy worries

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support.

Brent crude futures were down 3 cents by 0300 GMT at $64.20. US West Texas Intermediate (WTI) was up 6 cents at $57.57 a barrel.

"A very cautious open this morning supported by a better than expected (non-farm payrolls)," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. "Traders remain incredibly cautious about the dimmer global economic overhang."

Both oil benchmarks fell last week as concerns about a slowing global economy outweighed risks to supply. Brent fell more than 3% and WTI shed more than 1.5%.

US job growth rebounded strongly in June, with government payrolls surging, the Labour Department's closely watched employment report showed on Friday, suggesting May's sharp slowdown in hiring was probably a one-off.

Employers added 224,000 jobs last month, the most in five months, the report showed.

But the US-China trade war has dampened prospects of global economic growth and oil demand.

The lack of concrete progress in resolving the acrimonious trade war between the United States and China, however, means the bar could be very high for the US Federal Reserve not to lower borrowing costs at its July 30-31 policy meeting.

White House Economic advisor Larry Kudlow has confirmed top representatives from the United States and China will meet in the coming week to continue trade talks.

Still, Japan's core machinery orders fell for the first time in four months in May, posing the biggest monthly drop in eight months in a worrying sign that global trade tensions are taking a toll on corporate investment.

Oil received some support from simmering tensions over Iran and after an extension last week to output cuts by OPEC and its allies.

Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump, who pulled out of the pact last year.

"Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease," said Edward Moya, senior market analyst at OANDA.

Meanwhile, US energy companies this week reduced the number of oil rigs operating for the first time in three weeks as drillers follow through on plans to cut spending this year.

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support.

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support. Brent crude futures were down 3 cents by 0300 GMT at $64.20. US West Texas Intermediate (WTI) was up 6 cents at $57.57 a barrel. "A very cautious open this morning supported by a better than expected (non-farm payrolls)," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. "Traders remain incredibly cautious about the dimmer global economic overhang." Both oil benchmarks fell last week as concerns about a slowing global economy outweighed risks to supply. Brent fell more than 3% and WTI shed more than 1.5%. US job growth rebounded strongly in June, with government payrolls surging, the Labour Department's closely watched employment report showed on Friday, suggesting May's sharp slowdown in hiring was probably a one-off. Employers added 224,000 jobs last month, the most in five months, the report showed. But the US-China trade war has dampened prospects of global economic growth and oil demand. The lack of concrete progress in resolving the acrimonious trade war between the United States and China, however, means the bar could be very high for the US Federal Reserve not to lower borrowing costs at its July 30-31 policy meeting. White House Economic advisor Larry Kudlow has confirmed top representatives from the United States and China will meet in the coming week to continue trade talks. Still, Japan's core machinery orders fell for the first time in four months in May, posing the biggest monthly drop in eight months in a worrying sign that global trade tensions are taking a toll on corporate investment. Oil received some support from simmering tensions over Iran and after an extension last week to output cuts by OPEC and its allies. Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump, who pulled out of the pact last year. "Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease," said Edward Moya, senior market analyst at OANDA. Meanwhile, US energy companies this week reduced the number of oil rigs operating for the first time in three weeks as drillers follow through on plans to cut spending this year.

Oil prices tread water as market eyes global risks

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles.

Front-month Brent crude futures, the international benchmark for oil prices, were down 0.4% at $63.60 per barrel by 0112 GMT. Brent closed up 2.3% on Wednesday.

US West Texas Intermediate (WTI) crude futures were down 0.3% at $57.18 per barrel. WTI closed up 1.9% on Wednesday.

US crude inventories dropped by 1.1 million barrels last week, the Energy Information Administration (EIA) said on Wednesday. That compared with analyst expectations for a decrease of 3 million barrels.

"The US oil market remains oversupplied," said Edward Moya, senior analyst, OANDA.

But crude prices were underpinned after the Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020.

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles. Front-month Brent crude futures, the international benchmark for oil prices, were down 0.

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles. Front-month Brent crude futures, the international benchmark for oil prices, were down 0.4% at $63.60 per barrel by 0112 GMT. Brent closed up 2.3% on Wednesday. US West Texas Intermediate (WTI) crude futures were down 0.3% at $57.18 per barrel. WTI closed up 1.9% on Wednesday. US crude inventories dropped by 1.1 million barrels last week, the Energy Information Administration (EIA) said on Wednesday. That compared with analyst expectations for a decrease of 3 million barrels. "The US oil market remains oversupplied," said Edward Moya, senior analyst, OANDA. But crude prices were underpinned after the Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020.

Oil prices edge down, pressured by US supply

OPEC agreed on Monday to extend by nine months daily oil output cuts aimed at supporting prices and soaking up excess supplies, following last weekend's G20 pact between cartel kingpin <a href="https://www.wionews.com/world/russia-agrees-with-saudi-arabia-to-extend-opec-and-oil-output-deal-231649">Saudi Arabia and non-member Russia</a>.

"We are very happy to announce that we have reached an agreement to extend for nine months the current production level," said OPEC president and Venezuelan Oil Minister Manuel Quevedo at the group's plush Vienna headquarters.

The expected news followed an official ministerial output meeting of the 14-nation Organization of the Petroleum Exporting Countries (OPEC), which pumps just under one third of the world's oil.&nbsp;

Members will gather again on Tuesday for OPEC+ -&nbsp;a grouping that comprises a total of 24 crude producers including Russia, Kazakhstan, Malaysia and Mexico -&nbsp;which is also expected to extend its collective production limits.

The enlarged crude producing club had already decided in December to remove 1.2 million barrels per day from the market in a deal which ran through to the end of June.&nbsp;

The original cutbacks, sparked after oil prices tanked at the end of last year on fears of slower global growth, sent the market surging by a third in the first three months of this year.

The news nevertheless sent oil prices rallying on Monday, with sentiment boosted also by the China-US trade truce that was agreed at the G20 in Osaka.

New York crude gained 62 cents to finish at $59.09 per barrel, while Brent oil added 32 cents to $65.06.

"The G20 put a very nice backdrop to where we are today," said Saudi Arabia's Energy Minister Khalid al-Falih at a press conference announcing the extension.

"The global economy looks a lot better than it did a couple of years ago because of the agreement reached between President (Donald) Trump and China."

However, this week's OPEC action was largely overshadowed after Russian President Vladimir Putin and Saudi Arabia agreed Saturday on the sidelines of the G20 to extend the deal by between six and nine months, leaving only the time frame unclear.

The cartel's ministers also agreed on Monday to establish a formal and permanent "charter of cooperation" between OPEC and non-OPEC nations, despite reservations from Iran.

Falih said that Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin had met and "enthusiastically supported an extension for up to nine months".

"There was no doubt in their minds that this (OPEC+) framework... has been extremely beneficial to producers as well as consumers, and of course to the global economy," Falih said.

"They also gave us their support to (Russian Energy Minister Alexander) Novak and myself that they would welcome making this cooperation... a permanent framework that would always bring producers from both sides together."

Novak had declared earlier Monday that "everyone" supported the proposition to extend production caps.

The OPEC+ grouping, formed three years ago to combat slumping prices in the face of abundant supplies, together accounts for almost half of global crude.

Iran had earlier slammed the Osaka move, arguing that OPEC did not simply exist to rubber-stamp a decision made outside of the cartel, but did nevertheless support the extension.

The Islamic republic, with production severely hit by US sanctions, is however exempt from the December cuts agreement along with crisis-stricken pair Venezuela and Libya.

Falih was meanwhile swift to deflect criticism from Saudi Arabia's archfoe Iran that OPEC could "die" in the face of Riyadh and Moscow's deal.

"As Mark Twain said once, the reports of OPEC's death have been repeated many times, and every time it was ... greatly exaggerated," Falih told reporters earlier in the day.

Monday's meeting also followed an agreement between Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 to restart trade talks, reviving hopes of an end to their tariff war which has dented the outlook for energy demand and the global economy generally.

The cartel meanwhile remains on red alert over escalating US-Iran tensions that have also fuelled strong oil-price gains, particularly over disputed attacks on tankers in the Straits of Hormuz -- a vital passage for world oil supplies.

Yet global demand worries persist and the cartel has also lost considerable market share to the US, whose booming shale output has transformed it into the world's biggest oil producer ahead of Saudi Arabia.

OPEC agreed on Monday to extend by nine months daily oil output cuts aimed at supporting prices and soaking up excess supplies, following last weekend's G20 pact between cartel kingpin Saudi Arabia and non-member Russia.

OPEC agreed on Monday to extend by nine months daily oil output cuts aimed at supporting prices and soaking up excess supplies, following last weekend's G20 pact between cartel kingpin Saudi Arabia and non-member Russia. "We are very happy to announce that we have reached an agreement to extend for nine months the current production level," said OPEC president and Venezuelan Oil Minister Manuel Quevedo at the group's plush Vienna headquarters. The expected news followed an official ministerial output meeting of the 14-nation Organization of the Petroleum Exporting Countries (OPEC), which pumps just under one third of the world's oil. Members will gather again on Tuesday for OPEC+ - a grouping that comprises a total of 24 crude producers including Russia, Kazakhstan, Malaysia and Mexico - which is also expected to extend its collective production limits. The enlarged crude producing club had already decided in December to remove 1.2 million barrels per day from the market in a deal which ran through to the end of June. The original cutbacks, sparked after oil prices tanked at the end of last year on fears of slower global growth, sent the market surging by a third in the first three months of this year. The news nevertheless sent oil prices rallying on Monday, with sentiment boosted also by the China-US trade truce that was agreed at the G20 in Osaka. New York crude gained 62 cents to finish at $59.09 per barrel, while Brent oil added 32 cents to $65.06. "The G20 put a very nice backdrop to where we are today," said Saudi Arabia's Energy Minister Khalid al-Falih at a press conference announcing the extension. "The global economy looks a lot better than it did a couple of years ago because of the agreement reached between President (Donald) Trump and China." However, this week's OPEC action was largely overshadowed after Russian President Vladimir Putin and Saudi Arabia agreed Saturday on the sidelines of the G20 to extend the deal by between six and nine months, leaving only the time frame unclear. The cartel's ministers also agreed on Monday to establish a formal and permanent "charter of cooperation" between OPEC and non-OPEC nations, despite reservations from Iran. Falih said that Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin had met and "enthusiastically supported an extension for up to nine months". "There was no doubt in their minds that this (OPEC+) framework... has been extremely beneficial to producers as well as consumers, and of course to the global economy," Falih said. "They also gave us their support to (Russian Energy Minister Alexander) Novak and myself that they would welcome making this cooperation... a permanent framework that would always bring producers from both sides together." Novak had declared earlier Monday that "everyone" supported the proposition to extend production caps. The OPEC+ grouping, formed three years ago to combat slumping prices in the face of abundant supplies, together accounts for almost half of global crude. Iran had earlier slammed the Osaka move, arguing that OPEC did not simply exist to rubber-stamp a decision made outside of the cartel, but did nevertheless support the extension. The Islamic republic, with production severely hit by US sanctions, is however exempt from the December cuts agreement along with crisis-stricken pair Venezuela and Libya. Falih was meanwhile swift to deflect criticism from Saudi Arabia's archfoe Iran that OPEC could "die" in the face of Riyadh and Moscow's deal. "As Mark Twain said once, the reports of OPEC's death have been repeated many times, and every time it was ... greatly exaggerated," Falih told reporters earlier in the day. Monday's meeting also followed an agreement between Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 to restart trade talks, reviving hopes of an end to their tariff war which has dented the outlook for energy demand and the global economy generally. The cartel meanwhile remains on red alert over escalating US-Iran tensions that have also fuelled strong oil-price gains, particularly over disputed attacks on tankers in the Straits of Hormuz -- a vital passage for world oil supplies. Yet global demand worries persist and the cartel has also lost considerable market share to the US, whose booming shale output has transformed it into the world's biggest oil producer ahead of Saudi Arabia.

OPEC decides to extend oil output cuts after Saudi Arabia-Russia pact

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