UPDATE 10-Oil climbs over $1/bbl on U.S.-China trade deal hopes, Mideast tension


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    * U.S., China rekindle trade talks ahead of Trump-Xi G20
    * U.S. to send more troops to the Middle East amid Iran
    * Russia says too early to decide on future of global oil
    * U.S. crude oil stocks fall 812,000 bbls last week-API

 (Adds API data, commentary)
    By Stephanie Kelly
    NEW YORK, June 18 (Reuters) - Oil prices rose more than $1 a
barrel on Tuesday after news that China and the United States
were resuming trade talks ahead of a meeting at the G20 summit
later this month, spurring hopes that the two countries would
resolve an ongoing trade war.
    Rising tensions in the Middle East after last week's tanker
attacks, with the U.S. planning to send more troops to the
Middle East, also lent support.
    U.S. West Texas Intermediate crude  CLc1  futures rose
$1.97, or 3.8%, to settle at $53.90 a barrel. Brent crude
futures  LCOc1  gained $1.20, or 2%, to settle at $62.14 a
    "Had a very good telephone conversation with President Xi of
China. We will be having an extended meeting next week at the
G-20 in Japan. Our respective teams will begin talks prior to
our meeting," U.S. President Donald Trump tweeted.  urn:newsml:reuters.com:*:nL2N23P0VY 
    China, which previously declined to say whether the two
leaders would meet, confirmed the get-together.
    "The talks were dead in the water, and the damage to the
global economy has been growing on a daily basis," said John
Kilduff, a partner at Again Capital LLC in New York.
    Fears of a confrontation between Iran and the United States
have mounted since last Thursday's oil tanker attacks, which
Washington has blamed on Tehran. Iran has denied
involvement. urn:newsml:reuters.com:*:nL8N23O4N0
    Trump said he was prepared to take military action to stop
Tehran having a nuclear bomb but left open whether he would
sanction the use of force to protect Gulf oil
supplies. urn:newsml:reuters.com:*:nL8N23P4P5
    Iran on Monday said it would breach internationally agreed
curbs on its stock of low-enriched uranium within 10 days,
adding that European nations still had time to save a landmark
nuclear deal.  urn:newsml:reuters.com:*:nL8N23O1VN
    Acting U.S. Defense Secretary Patrick Shanahan announced on
Monday the deployment of about 1,000 more troops to the Middle
East for what he said were defensive purposes, citing concerns
about a threat from Iran.  urn:newsml:reuters.com:*:nL8N23O4N0
    Market participants are also awaiting a meeting between the
Organization of the Petroleum Exporting Countries and other
producers including Russia, a group known as OPEC+, to decide
whether to extend a supply reduction pact that ends this month.
    OPEC and non-OPEC states are discussing holding meetings on
July 10-12 in Vienna, a date range proposed by Iran, OPEC
sources said on Tuesday.  urn:newsml:reuters.com:*:nS8N1ZH05P
    Russian Energy Minister Alexander Novak said on Tuesday it
was too early to make any decisions about the future of the
agreement because of market uncertainties.  urn:newsml:reuters.com:*:nR4N23J018    
    Oil prices have fallen by more than 15% from April's 2019
highs, partly because of concerns over the U.S.-China trade war
and disappointing economic data.
    High U.S. crude stockpiles, partly due to growing domestic
production, has also weighed on the market. Commercial stocks
were at their highest since July 2017 and about 8% above the
five-year average for this time of year, according to government
data last week.  urn:newsml:reuters.com:*:nL2N23J0MI
    U.S. crude stocks fell by 812,000 barrels last week to 482
million, industry group the American Petroleum Institute said on
Tuesday.  urn:newsml:reuters.com:*:nZXN04LV00
    Official estimates are due to be released Wednesday.  EIA/S 

GRAPHIC: New York Fed Empire business survey png    https://tmsnrt.rs/2XOP9Mc
TECHNICALS-Brent oil biased to fall to $59.78     urn:newsml:reuters.com:*:nL4N23P0KD
U.S., Russian, Saudi crude oil production png    https://tmsnrt.rs/2QYNGAd
TECHNICALS-U.S. oil biased to fall towards $50.79    
 (Additional reporting by Ahmad Ghaddar in London and Aaron
Sheldrick in Tokyo; Editing by Marguerita Choy and Jan Harvey)
 ((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters
Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))

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