Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.
The administration of US President Donald Trump is reportedly drafting a bill that would authorize legal action against the Organization of the Petroleum Exporting Countries (OPEC) for “artificially raising oil and gas prices”.
Oil rose by more than one percent on Monday, set for its largest one-day increase in a month after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of one million barrels per day.
The world's biggest trading houses said on Wednesday they saw oil prices not falling below $65 per barrel and possibly breaking above $100 next year as US sanctions on Iran reduce crude exports from the Islamic Republic.
Oil rose above $75 a barrel on Tuesday to its highest since November 2014 before paring some gains, supported by OPEC-led production cuts, strong demand and the prospect of a US pullout from the Iran nuclear deal.