Crude oil prices edged higher on Thursday as the market awaits the outcome of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Brent crude at last look gained 0.7% to US$106.41/barrel and West Texas Intermediate crude rose 0.5% to $101.55/barrel. The market is waiting for positive results on the U.S.-Israeli war on Iran from the U.S.-China talks, Reuters said in a Thursday report, citing analysts.
"Failure to make meaningful progress on reopening the strait could leave the U.S. with few options other than renewed military action," Reuters quoted IG analyst Tony Sycamore as saying in a note.
This comes as Iran appears to have tightened its control over the Strait of Hormuz, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the Middle East, the report said.
Meanwhile, U.S. crude inventories declined by 4.3 million barrels to 452.9 million barrels in the week ended May 8 on rising exports, the U.S. Energy Information Administration reported on Wednesday.