Oil prices are benefiting from a two-day attack by Houthi drone aircraft on oil facilities in Saudi Arabia and optimism that the US-China trade dispute could be resolved, chief market analyst Oanda New York said on Wednesday.
But an oil expert predicted in an interview with the island Net to earn crude dollars to two dollars in trading during the current period only, unless there is a painful blow, as described.
Oil prices rose in early trading today by about 1% after the Houthi attack by drones on oil installations in Shiba in Saudi Arabia.
"Oil is benefiting from the general optimism that we are not going to see the horrific trade war scenario and after a drone attack on oil and gas facilities in Saudi Arabia alerted markets that geopolitical tensions in the Middle East will not end soon," Moya said.
Traders are looking for any signs of easing trade tensions between China and the United States.
Global benchmark crude rose 1.1% to $ 59.28 a barrel. US West Texas Intermediate (WTI) crude rose 1 percent to $ 55.42 a barrel by about 3:00 UTC, before those gains were later reversed.
Saudi Energy Minister Khalid al-Falih said on Saturday the Houthi group's attack on a Saudi oil field on Saturday was aimed at disrupting world oil supplies.
"This targeting of vital facilities is not only aimed at the Kingdom, but also at the security of the world's energy supply," he added.
In May, the Houthis announced a similar attack with seven drones it said had targeted Aramco.
In an interview with Al Jazeera Net said former Iraqi Oil Minister Essam Chalabi naturally that oil prices affected by attacks, especially if repeated and hit their targets.
He added that these attacks raise concern among oil dealers, as well as concerns about other Gulf crises and trade war and its impact on global economic growth.
Chalabi predicted that oil prices will fluctuate between $ 55 to $ 65 in light of skirmishes from there and attacks from there. "There are factors pushing prices up such as tensions in the Gulf and other factors drag these prices down, such as the trade war between America and China and the decline in global demand growth. ".
However, he said, "These prices may change in the event of an extraordinary event. A painful blow from one side or the other."
A pessimistic report by the Organization of the Petroleum Exporting Countries has raised concerns about oil demand growth. It is rare for OPEC to declare a pessimistic view of market expectations.
In a monthly report, OPEC lowered its forecast for oil demand growth in 2019 by 40,000 bpd to settle at 1.10 million bpd, noting that the market will post a slight surplus in 2020. This is due to weak economic growth and ongoing global trade problems.
Larry Kudlow, White House economic adviser, said trade representatives in the United States and China would hold talks within 10 days.
"If these meetings succeed ... we intend to invite China to come to the United States" to support progress in negotiations to end the trade war, which has become a potential threat to global economic growth, he said.