Oil rises as fears of oversupply ebb

Oil rises as fears of oversupply ebb

Another oil trading stock, the U.S. West Texas Intermediate (WTI) futures saw an escalation of its oil prices by 0.6%, to $68.64 per barrel.

"That's going to be very bullish for oil demand", Flynn said.

An evolving trade conflict between the USA and China has caused oil to retreat from the highs of June and spurred price volatility, which had risen last week to the highest level since February.

The spot gold XAUUSD is now trading at $1227.24 with 0.22% increase in value while US gold futures for August delivery were at $1227.60 with 0.17% increase in value.

The tension between Presidents Donald Trump and Hassan Rouhani also escalated to new levels this week after Rouhani warned Trump that "war with Iran is the mother of all wars" and cautioned, "Mr. Trump!"

Saudi Arabia said on Thursday it was temporarily halting all oil shipments through the strategic Red Sea shipping lane of Bab-el-Mandeb after an attack on two oil tankers by Yemen's Iran-aligned Houthi movement. USA light crude was 5c higher at $68.57, having risen almost 1% in the previous session. Total volume traded Wednesday was 42 percent below the 100-day average.

Gold prices traded a bit lower on Tuesday as the greenback edged up after a steep decline in the previous session. The global oil benchmark, Brent Crude, went up to a maximum of 0.9% to $73.75. WTIUSD is now trading at $70.10 per barrel with a 0.05% increase in value.

"Trump should know that we are nation of martyrdom and that we await him", Soleimani was quoted as saying.

Oil prices rose for a second day on Wednesday after government data showed US crude inventories fell to the lowest since February 2015, easing worries about oversupply that have weighed on markets in recent weeks.

In response to President Trump's tweet, Iran's Foreign Minister Javad Zarif responded on Twitter on Monday, "COLOR US UNIMPRESSED: The world heard even harsher bluster a few months ago".

South Korea's crude oil imports from Iran dropped 41% year on year in June ahead of the re-imposition of United States sanctions on the Middle Eastern country, while intakes from Kazakhstan and Mexico jumped.

G20 finance leaders on the weekend voiced concern about the risk to global growth from trade tensions between the United States and China, among others.

Iran will react with equal countermeasures if Washington tries to block its oil exports, the Foreign Ministry said on Tuesday, while the Islamic Republic's armed forces chief said USA threats would draw an "unimaginable and regrettable" reaction.

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