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Oil prices rise on trade talks resumption hopes

Oil prices rise on trade talks hopes

Oil prices rose on Tuesday as the United States and China made conciliatory remarks at the trade talks, suggesting that their collapse might be avoided, and after a pumping halt from a critical oil pipeline in the Gulf.

Brent crude futures traded $71.23 a barrel, surging 1.44 percent, noting that prices closed 0.6 percent down the previous session.

Crude oil also traded higher at $61.66 a barrel, compared to the session’s open at $60.85, where prices fell on Monday after hitting a peak of $63.30.

Hopes returned to markets on Tuesday after positive upbeat remarks from both China and the United States regarding trade talks resumption.

Wang Yi, a Chinese diplomat and state councilor, said on Monday that Beijing hopes to reach a compromise, saying "the negotiating team of each country has the ability and the wisdom to resolve the reasonable demands of the other party."

While President Donald Trump said that he expected to speak to Chinese president Xi Jinping at the Group of Twenty (G20) summit in late June and hold a "probably fruitful meeting".

Oil increased more than a dollar a barrel on Monday but declined as investors became nervous due to the re-escalation between the U.S. and China.  

China responded on Monday to the U.S. tariffs hike on Chinese goods by announcing an increase in tariffs on nearly $60 billion worth of U.S. goods on June 1.

It is worthwhile to mention that the United States and China combined accounted for 34 percent of global oil consumption during the first quarter this year.

In the oil-rich Gulf region, Saudi Arabia decided to halt its operations from the East-West pipeline, which was attacked on Sunday, until evaluating the damage.

Saudi Arabia said that drones had attacked two pumping stations off the coast of the United Arab Emirates belonging to state oil company Aramco.

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