Oil rises more than 1% after Trump flags China's interest in US supplies
Oil prices gained more than 1% after President Donald Trump said China wants to buy oil from the United States and as concerns persisted over ship attacks and seizures despite Iran saying about 30 vessels had passed through the Strait of Hormuz.
Brent crude oil futures rose $1.17, or 1.11%, to $106.89 a barrel by 0252 GMT, while U.S. West Texas Intermediate futures were up $1.10, or 1.09%, to $102.27.
Trump also said in an interview with Fox News he would not be much more patient with Iran as he urged Tehran to reach a deal with Washington.
A ship was reported seized by Iranian personnel off the United Arab Emirates and headed for Iranian waters on Thursday, while the White House said U.S. President Donald Trump and Chinese President Xi Jinping had agreed on the need to keep the nearby Strait of Hormuz shipping lane open.
Also, an Indian cargo vessel carrying livestock from Africa to the United Arab Emirates was sunk on Wednesday in waters off the coast of Oman.
Iran's Revolutionary Guards said 30 vessels had crossed the Strait of Hormuz since Wednesday evening, still far short of 140 that were typical daily before the war, but a substantial increase if confirmed.
Yang An, analyst at Haitong Futures, said the main driver of oil prices was still tight supply.
"Oil prices swung several times yesterday but still closed near the day's high," he said.
"Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply."
Trump and China's Xi Jinping are set to meet on Friday to wrap up a two-day state visit that has featured pomp and business deals.
U.S. Trade Representative Jamieson Greer said on Friday morning that China was being very pragmatic about involvement with Iran, and it was important to China to have the Strait of Hormuz open, in an interview with Bloomberg.
