Oil prices rise as Trump says China wants to buy US crude

(Sharecast News) - Oil prices rose on Friday after US President Donald Trump said that China had agreed to buy oil from the US.

In an interview with Fox News, Trump said: "They've agreed they want to buy oil from the United States, they're going to go to Texas, we're going to start sending Chinese ships to Texas and to Louisiana and to Alaska."

He also said that China has "an insatiable appetite for energy, and we have unlimited energy", noting that the US produces more oil and gas than Saudi Arabia and Russia combined.

China has not yet confirmed Trump's claims.

At 0945 BST, Brent crude was up 3.2% at $109.12 a barrel and West Texas Intermediate was 3.7% higher at $104.89.

Kathleen Brooks, research director at XTB, said the fact there is still no sign that the Strait of Hormuz will reopen is also underpinning oil.

"Although Iran allowed 30 ships to pass through the Strait earlier this week, it is a mere trickle compared to pre-March levels," she said. "Added to this, President Trump also sounded irritated by the lack of progress on making a deal with Iran in an interview late on Thursday. Although the ceasefire continues to hold, it remains extremely fragile.

"The market is discounting a positive summit between the US and China, and is instead focusing on the lack of progress towards reopening the Strait of Hormuz for another week."