Oil edges up ahead of Trump-Xi meeting in Beijing

[BEIJING] Oil prices edged up on Thursday (May 14) as investors awaited a meeting between US President Donald Trump and Chinese President Xi Jinping later in the day, as traders focused on the Iran war.

Brent crude futures were up 13 US cents, or 0.12 per cent, to US$105.76 a barrel by 8.15 in Singapore, while US West Texas Intermediate futures rose 12 US cents, or 0.12 per cent, to US$101.14.

Both benchmark oil futures contracts fell on Wednesday as investors worried about possible US interest rate hikes. Brent crude futures fell more than US$2 a barrel, while WTI futures fell more than US$1.

Trump landed in Beijing on Wednesday evening and is heading into a series of meetings with Xi, aiming to secure economic wins, maintain a fragile trade truce and navigate thorny issues such as the Iran war and arms sales to Taiwan.

While Trump has said that he did not think he would need China’s help to end the war with Iran, the president is nonetheless expected to ask Xi for assistance in resolving the costly and unpopular conflict. But analysts said he is unlikely to get the support he wants.

“Failure to make meaningful progress on reopening the strait could leave the US with few options other than renewed military action,” IG analyst Tony Sycamore said in a note.

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Iran, meanwhile, 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 region.

China is the biggest buyer of Iranian oil despite sanctions pressure from the Trump administration.

More than 80 per cent of Iran’s shipped oil was destined for China in 2025, as Chinese independent refiners take advantage of discounted US-sanctioned oil. REUTERS