Oil prices pushed higher for a second day on Wednesday, buoyed by sanctions-related supply risks, hopes of a US-China trade deal and news that the US is seeking oil for delivery to its strategic reserves.
Brent crude futures rose 18 cents, or 0.29 per cent, to $61.50 a barrel as of 0137 GMT, while US West Texas Intermediate crude futures climbed 21 cents, or 0.37 per cent, to $57.45.
Oil has bounced off a five-month low hit on Monday that was fuelled by producers pumping more and trade tensions impacting demand.
Supply risks arose from news that a planned summit between US President Donald Trump and Russian President Vladimir Putin was put on hold and supply-disruption fears fueled by Western pressure on Asian buying of Russian oil.
“Despite the overall bearish sentiment driven by an oil supply glut and weak demand, the risk of supply disruption in hotspots like Russia, Venezuela, Colombia and the Middle East remains in place and prevents oil price staying below the $60 handle,” said Mukesh Sahdev, founder and CEO of energy market consultancy XAnalysts.
Investors are also closely watching the progress of US-China trade talks as officials from both countries are expected to meet this week in Malaysia.
US President Donald Trump said on Monday he expects to work out a fair trade deal with Chinese President Xi Jinping, whom he plans to meet in South Korea next week.
Oil also found support on a US plan to refill its strategic reserves, said ANZ research analysts in a note on Wednesday.
The US Department of Energy said on Tuesday it is looking 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 the stockpile.
US crude, gasoline and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
