Oil hits its best level in more than 3 years

Oil prices rebound as U.S. China trade tensions ease for now

Oil prices rebound as U.S. China trade tensions ease for now

Crude oil markets have been heating up and this has reflected in fuel prices in India with petrol touching 4-year highs and diesel also at all-time highs.

U.S. West Texas Intermediate crude were up $1.49, or 2.3%, to $67 U.S., after touching a session high going back to December 4, 2014, when it touched $68.22.

US crude futures CLc1 traded at $67.10 a barrel, having risen 8.1 percent so far this week, Reuters reports.

USA crude rose 2.3% to $66.98 a barrel, adding to gains after the 10:30 a.m. ET EIA data.

Brent, the benchmark for worldwide oil prices, earlier climbed to its highest level in more than three years after President Donald Trump earlier warned Russian Federation to "Get ready" for a US missile attack on Syria, whose government Moscow has backed during its seven-year civil war. "The market is now concerned for the escalating China-U.S. trade war tensions-and with good reason since this [would] be bad for global growth and oil demand growth further down the line", said Bjarne Schieldrop, chief commodities analyst at SEB Markets.

Prices for the US oil futures benchmark notched a turn higher late in Thursday's trading session to post a modest gain and hold ground at their highest since early 2014.

OPEC is cutting output by even more than it promised and the restraint is reducing oil stocks globally, a trend most visible in the USA, the world's largest and most transparent oil market.

Oil inventories rose by 3.3 million barrels with gasoline inventories up by 500,000 barrels, the Energy Information Administration said.

After several sessions of strong gains, oil prices edged lower nonetheless.

In its monthly short-term energy outlook, the agency forecast that USA crude oil output will rise by 750,000 barrels per day (bpd) to 11.44 million bpd next year.

The Chinese Commerce Ministry also said there had been no bilateral negotiations with the United States on the trade frictions.

Despite oil's price spike after the rocket over Riyadh, the market remains focused on fundamentals, said Abhishek Kumar, senior energy analyst at Interfax Energy's Global Gas Analytics in London.

The uptick in prices came on the back of heightening tensions in the Middle East. Saudi Arabia, the biggest oil exporter, reportedly shot down at least three ballistic missiles sent by pro-Iranian Yemens on Wednesday.

While US figures suggest that crude supplies remain ample, geopolitical risks are overshadowing supply/demand dynamics for now. The Organization of Petroleum Exporting Countries, meanwhile, reported that total member state output declined by an average 200,000 barrels per day last month.

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