Oil up despite Sino-US trade war

Oil prices gained on Tuesday in Asia despite conflicting signs about the Sino-US trade war.

US Crude Oil WTI Futures gained 0.7% to $54.01 by 11:15 PM ET (03:15 GMT), while International Brent Oil Futures rose $58.48.
US President Donald Trump said he thinks China wants to make a deal “very badly” and that China called his trade team on Monday and said “let’s get back to the table.”

“So we will be getting back to the table and I think they want to do something. They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world,” Trump said.

However, China’s Foreign Ministry Spokesman Geng Shuang said he was not aware the phone call had taken place. Hu Xijing, editor-in-chief of Chinese state-owned media Global Times, also denied Chinese negotiators have spoken with their US counterparts.

“China didn’t change its position. China won’t cave to US pressure,” said Hu.

Their comments contrasted with remarks made by Liu He, China’s top trade negotiators, who said earlier this week that China is willing to solve the issues with the US “through consultation and cooperation with a calm attitude.”

Despite today’s gains, oil prices are still down around 8% this month as concerns over global trade and a potential recession weigh on the demand outlook.