Oil prices rise amid fears of attacks and seizures on ships

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- Oil prices rose on Friday as market concerns about attacks on and seizures of ships persisted, even as Iran said about 30 vessels had crossed the Strait of Hormuz, as the U.S. and Chinese presidents began the second day of talks in Beijing.

By 0100 GMT, Brent crude futures had risen 60 cents, or 0.57 percent, to $106.32 a barrel, and U.S. West Texas Intermediate crude futures had gained 54 cents, or 0.53 percent, to $101.71.

Reports indicate that Iranian personnel seized a ship off the coast of the UAE and took it into Iranian waters on Thursday, while the White House said that US President Donald Trump and his Chinese counterpart Xi Jinping agreed on the need to keep the Strait of Hormuz open to navigation.

An Indian cargo ship carrying livestock from Africa to the United Arab Emirates sank on Wednesday in waters off the coast of Oman.

Iran’s Revolutionary Guard said 30 ships had crossed the Strait of Hormuz since Wednesday evening, a figure still far below the 140 ships that passed through daily before the war, but representing a significant increase if confirmed.

Yang An, an analyst at Haitong Futures, said the main factor affecting oil prices remains the shortage of supply.

He added, "Oil prices fluctuated several times yesterday, but settled near their highest level of the day at the close."

He continued, "Ships passing through the strait have calmed some market concerns, but not enough to reverse the strong trend driven by supply shortages."

Trump and Xi are scheduled to meet on Friday at the conclusion of a two-day official visit.

U.S. Trade Representative Jamieson Greer said this morning in an interview with Bloomberg that China is taking a very pragmatic approach to dealing with Iran, and that it is important for China that the Strait of Hormuz remains open.