Oil prices rise as Trump says he is set to meet with the Chinese President Xi
Oil prices rose by nearly two per cent this afternoon as markets were buoyed by hopes of an ease in US-China tensions.
Markets turned upwards after US President Donald Trump said he was expecting to hold an “extended” meeting with his Chinese counterpart Xi Jingping later this month at a meeting of the Group of 20 nations in France.
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“Had a very good telephone conversation with President Xi of China,” Trump tweeted.
He added: “We will be having an extended meeting next week at the G-20 in Japan.”
The countries are now working on arrangements, the President said.
“Right now, this is a rumour-driven market,” said Gene McGillian, vice president of market research at Tradition Energy. “There’s the expectation that if you are able to reach a trade resolution, it would help global economic growth.”
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Prices were also propped up by Middle East tensions, after two oil tankers were hit by attacks last week.
The US said this week that it plans to send a further 1,000 troops to the Middle East to counter the perceived threat from Iran.