(May 14): Oil was steady ahead of a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, which is being held against the backdrop of the Iran war that shows no signs of a near-term resolution.
West Texas Intermediate traded near US$101 a barrel after declining 1.1% in the previous session. Brent crude closed below US$106. Trump is scheduled to meet Xi on Thursday, and the US leader told reporters on Tuesday that trade talks will be prioritized rather than discussions about the Middle East conflict.
The flow of crude and fuels through the crucial Strait of Hormuz fell by nearly six million barrels per day in the first quarter, following the start of hostilities at the end of February, according to the Energy Information Administration. Ahead of the Trump-Xi summit, the US threatened banks and sanctioned more entities over the sale of Iranian oil to China, the biggest buyer.
A ceasefire has been in place since early April, despite a series of flareups in violence, but the US and Iran appear to making little progress toward resolving their differences and agreeing on a peace proposal. That’s kept the Strait of Hormuz effectively closed, choking off crucial energy supplies.
Uploaded by Isabelle Francis
