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Oil steadies as U.S.-Iran optimism faces U.S.-China trade deal hopes

Published 2019-08-26, 11:59 a/m
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* Stage being set for Iran-U.S. summit to find deal - Macron

* Trump comments may signal easing of trade row

* Chinese top negotiator hopes for 'calm' negotiations

By Stephanie Kelly

NEW YORK, Aug 26 (Reuters) - Oil prices steadied on Monday after France's president lifted hopes for a deal between the United States and Iran, while optimism for easing U.S.-China trade tensions supported prices.

Brent crude LCOc1 fell 13 cents to $59.21 a barrel by 11:35 a.m. EDT (1535 GMT), after earlier hitting a session high of $60.17.

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 16 cents to $54.33 a barrel, after reaching $55.26 a barrel.

Prices fell after French President Emmanuel Macron said preparations were underway for a meeting between Iranian President Hassan Rouhani and U.S. President Donald Trump in the coming weeks to find a solution to a nuclear standoff. last year abandoned Iran's 2015 nuclear deal with world powers, arguing that he wanted a bigger deal that not only limited Iran's atomic work, but also reined in its support for proxies in Syria, Iraq, Yemen and Lebanon, and curbed its ballistic missile program.

Trump also tightened sanctions on Iran in May to try to choke off its oil exports.

"Now the market is pondering the possibility that we'll see a flood or Iranian oil come onto the market if there's progress made," said Phil Flynn, an analyst at Price Futures Group in Chicago. "We have to be admittedly cautious because we've heard of deals one minute only to be tweeted down the next minute."

Buoying prices, Trump said he believed China was seeking a trade deal after he said Beijing contacted U.S. officials overnight to say it wanted a return to talks. is possible. I can say we are having very meaningful talks, much more meaningful I would say than any time frankly," Trump said later on Monday.

Chinese Foreign Ministry spokesman Geng Shuang said he had not heard about a phone call between the two sides.

China's top negotiator, Vice Premier Liu He, had earlier said Beijing was willing to solve the impasse through "calm" negotiations and opposed an escalation. for the global economy have increased as trade tensions between Beijing and Washington mounted in recent days. Oil prices have fallen about 20% from a 2019 high reached in April in part because of worries that the U.S.-China trade conflict is hurting the global economy and therefore could dent demand for oil.

China's Commerce Ministry said last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft. retaliation, Trump said he was ordering U.S. companies to look at ways to close operations in China and make products in the United States. analyst Bjarne Schieldrop said the oil market was worried about "the secondary global growth effects of an upwards spiralling trade war between China and the U.S.."

"The second concern for the oil market is that ... China is now ready to wrestle with the U.S. in the global space of oil.

https://tmsnrt.rs/2X8Myf7 CHART: Brent oil may retest support at $58.1

L3N25M0TB CHART: U.S. oil may test support at $52.60

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