Oil prices pushed higher for a second day on Wednesday, by more than 1%, buoyed by sanctions-related supply risk and hope of a U.S.-China trade deal.
Investors also digested news of the U.S. seeking oil for delivery to its strategic reserves, according to a Reuters report.
Brent crude futures rose 94 cents, or 1.5%, to $62.26 a barrel as of 0500 WAT, while U.S. West Texas Intermediate crude futures climbed 92 cents, or 1.6%, to $58.16.
Oil recovered from a five-month low on Monday as producers pumped more supply while trade tensions slashed demand.
Supply risk arose overnight from news that a summit between U.S. President Donald Trump and Russian President Vladimir Putin was put on hold, as well as disruption fear fuelled by Western pressure on Asian buyers of Russian oil.
Investors also monitored tension between the U.S. and Venezuela, a key oil producer.
In recent months, U.S. President Donald Trump has ordered strikes on at least six vessels in the Caribbean that the U.S. suspected of transporting narcotics, as part of a campaign against a “narcoterrorist” threat emanating from Venezuela.
Investors are also closely watching the progress of U.S.-China trade talks as officials from both countries are set to meet this week in Malaysia.
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Trump said that he expects to work out a fair trade deal with Chinese President Xi Jinping, whom he plans to meet with in South Korea next week.
U.S. crude, gasoline, and distillate stocks fell last week, Reuters quoted market sources, citing American Petroleum Institute figures on Tuesday.
The U.S. Department of Energy said on Tuesday it aims to buy 1 million barrels of crude oil for delivery to the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish its stockpile.
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