Oil Prices Climb as U.S., North Korean Leaders Hold Historic Talks

Jun 12, 2018

Investing.com – Oil prices climbed on Tuesday as traders look forward to the outcome of a summit between U.S. President Donald Trump and North Korean leader Kim Jong Un in Singapore.

Crude Oil WTI Futures for July delivery were trading at $66.21 a barrel at 12:22AM ET (04:22 GMT), up 0.17%. Brent Oil Futures for August delivery, traded in London, were up 0.03% at $76.48 per barrel. 

Shanghai Crude Oil WTI Futures for September delivery were down 0.06% at 469.90 yuan per barrel on Tuesday. 

Oil markets would likely to be heavily driven by policy events and statements this week, according to analysts.

"This week is all about global developments ... And today marks the potentially momentous meeting between Donald Trump and North Korean leader Kim Jong-Un in Singapore," said Shannon Rivkin, investment director at Australia's Rivkin Securities.

"Any positive outcome could be good news for markets, even if gold and oil may take a short-term hit," he added.

However, movements in oil markets are likely to remain limited as traders were reluctant to take on large new positions ahead of a meeting between producer cartel OPEC and some of its allies on June 22, as investors continued to fear OPEC could ease production curbs at its meeting to offset falling supplies in Venezuela and an expected drop in Iran oil exports as U.S. sanctions loom.  

OPEC-member Iraq said last week that a production increase was not on the table as the market was stable and prices were good, despite reports that the U.S. government had asked Saudi Arabia and other OPEC members to increase oil output by around 1 million.