Oil Prices Edge Up In Cautious Trade

Oil prices rose on Monday, although the upside remained capped by renewed concerns about a slowing global economy.

Benchmark Brent crude edged up 0.25 percent to $64.38 a barrel while U.S. West Texas Intermediate (WTI) futures were up 0.1 percent at $57.55 a barrel.

Prices remain somewhat supported by robust U.S. jobs report released last week and a flare up in geopolitical tensions.

The latest jobs report showed that U.S. employment surged up by 224,000 jobs in June, the most in five months, after a gain of 72,000 jobs in May. Economists had expected employment to increase by about 160,000 jobs.

Geopolitics continue to remain in focus after Iran said on Sunday it would boost its uranium enrichment, in breach of a cap set by a landmark 2015 nuclear deal.

The announcement prompted a warning ‘to be careful’ from U.S. President Donald Trump, who pulled out of the pact last year.

On the flip side, the lack of concrete progress in resolving the acrimonious trade war between the United States and China has dampened prospects of global economic growth and oil demand.

As top U.S. and Chinese officials organize a resumption of talks for this week to try to resolve a year-long trade war, Chinese Vice President Wang Qishan warned against “protectionism in the name of national security”, and called major powers to make more contributions to global peace and stability.

The material has been provided by InstaForex Company – www.instaforex.com

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