(Bloomberg) -- Oil edged higher and is set for a weekly gain as trade news continues to whipsaw the market against the backdrop of rising U.S. stockpiles and a weakening global demand outlook.
Futures added as much as 1.1% in New York after falling 1.4% Thursday. President Donald Trump said he had a call coming soon with his Chinese counterpart Xi Jinping after a pledge from Beijing to retaliate against planned U.S. tariffs. Earlier in the week, oil surged the most in more than a month after the Trump administration said it would delay levies on some products.
Oil has swung between gains and losses this month as concerns about the impact of the U.S.-China trade war compete with a pledge from Saudi Arabia to stem the price rout. While tensions with Iran linger, a second weekly surprise increase in American crude inventories compounded demand fears after weak economic data from Germany and China stoked negative sentiment.
“Investors are still hopeful about the possibility of further trade talks and Trump is likely pressured by the tumultuous sessions seen on Wall Street,” said Kim Kwangrae, a commodities analyst at Samsung (KS:005930) Futures Inc. There’s more upside for oil due to potentially easing trade conflicts and geopolitical risks, he said.
West Texas Intermediate crude for September delivery increased 42 cents, or 0.8%, to $54.89 a barrel on the New York Mercantile Exchange as of 10:02 a.m. Singapore time. The contract is up 0.8% this week, set for the first gain this month.
Brent for October settlement rose 28 cents, or 0.5%, to $58.51 on the ICE (NYSE:ICE) Futures Europe Exchange. The contract is little changed for the week. The global benchmark traded at a $3.69 premium to WTI for the same month.
