Crude Oil Prices Increase Ahead of Trump, Xi Meeting
Prices of crude oil increased on Wednesday with a new wave of Israeli strikes on central Gaza and trade deal hopes between the US and China, while US sanctions targeting Russia’s two largest oil companies and the Organization of the Petroleum Exporting Countries’ (OPEC) output plans limited gains.
Brent crude was trading at $63.93 per barrel, up 0.15% from the previous close of $63.83. US benchmark West Texas Intermediate (WTI) also rose by 0.04% to $60.27, compared to $60.24 in the prior session.
The conflict in Gaza continues to weigh on market sentiment. The Israeli army killed 63 Palestinians, including 24 children, in the Gaza Strip since Tuesday evening, violating the ceasefire agreement, according to medics.
In response, the Palestinian group Hamas said Tuesday that the planned handover of the body of an Israeli captive will be postponed due to Israel’s ceasefire violations.
US President Donald Trump and Chinese President Xi Jinping are expected to meet Thursday in South Korea, with a potential trade agreement between the two countries likely to top the agenda.
Meanwhile, following US President Donald Trump’s announcement of sanctions against Russia, the country’s second-largest oil producer, Lukoil, said Monday it would sell its international assets.
Lukoil, which accounts for about 2% of global oil output, is taking what analysts describe as the most significant step by a Russian company since Western sanctions were imposed after Russia’s full-scale invasion of Ukraine in February 2022.
OPEC and its allies, including Russia, collectively known as OPEC+, are expected to consider another modest production increase in December. The group has long maintained output cuts to support the global oil market. CBN Allots N2.1trn OMO Bills to Investors at Decent Rates
