Key Moments
- Brent crude rose to $106.08 a barrel and U.S. WTI climbed to $101.43 as of 0714 GMT.
- Investors are closely tracking the Trump-Xi meeting in Beijing for any progress on ending the Iran war and reopening the Strait of Hormuz.
- The International Energy Agency now expects a supply shortfall this year, reversing its earlier forecast for an oil surplus.
Oil Prices Edge Up Ahead of Beijing Summit
BEIJING/SINGAPORE, May 14 (Reuters) – Crude prices inched higher on Thursday as traders centered their attention on a closely watched meeting in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping, looking for any signs of movement toward resolving the Iran war.
Market participants are assessing whether the summit can produce steps that might ease tensions and support the reopening of critical oil shipping routes affected by the conflict.
Crude Benchmarks Rebound After Prior Session Losses
By 0714 GMT, Brent crude futures had gained 45 cents, or 0.43%, to trade at $106.08 a barrel. U.S. West Texas Intermediate (WTI) futures were up 41 cents, or 0.41%, at $101.43 a barrel.
The modest advance followed a weaker session on Wednesday, when both benchmarks retreated as concerns grew that higher fuel costs could intensify inflationary pressures and prompt U.S. interest rate hikes. Brent crude futures slid by more than $2 a barrel, while WTI futures fell by more than $1.
| Contract | Price | Move | Percentage Change | Time (GMT) |
|---|---|---|---|---|
| Brent crude futures | $106.08 | +$0.45 | +0.43% | 0714 |
| WTI futures | $101.43 | +$0.41 | +0.41% | 0714 |
Trump-Xi Meeting Puts Iran War in Focus
Trump is anticipated to press Xi to use Beijing’s influence with Tehran and encourage Iran to reach an agreement with Washington that would bring the conflict to an end. However, analysts expressed skepticism that Xi will be prepared to exert substantial pressure on China’s long-standing strategic partner.
At the opening of the two-day summit on Thursday, Xi told Trump that trade negotiations were making headway, while cautioning that disagreements over Taiwan could push the bilateral relationship onto a dangerous trajectory.
The comments, reported by Xinhua news agency, framed the outlook for what Trump has characterized as possibly the “biggest summit ever” after a ceremony-rich welcome at Beijing’s Great Hall of the People.
“Oil prices are in a wait-and-see mode,” ING analysts said in a note on Thursday, adding that the market could be pinning too much hope on the U.S.-China talks yielding some positive results on the Iran war.
Strait of Hormuz Disruption and Geopolitical Risk
The Strait of Hormuz, a vital passageway for energy shipments, has been largely closed since the war erupted at the end of February. The prolonged disruption has fueled concerns about supply security and contributed to heightened volatility in oil markets.
“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.
Iran appears to have consolidated its grip over the strait, reaching arrangements with Iraq and Pakistan for the transport of oil and liquefied natural gas from the region.
A Chinese supertanker loaded with two million barrels of Iraqi crude transited the strait on Wednesday after being stuck in the Gulf for more than two months. It was only the third oil tanker to pass out of the strait since the onset of the war.
IEA Flags Supply Shortfall as War Hits Output
The International Energy Agency stated on Wednesday that global oil supply will fall short of total demand this year as the war disrupts Middle East production and depletes inventories at an unprecedented rate. The agency’s previous projection had been for a surplus, but the conflict has significantly altered its outlook.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
