Crude oil prices surged on Friday after US President Donald Trump said China has agreed to buy oil from the United States following his meeting with Chinese President Xi Jinping.
The international benchmark Brent crude futures for July gained 1.49 per cent to $107.30 per barrel, while US West Texas Intermediate (WTI) futures for June jumped 1.55 per cent to $102.74 per barrel.
Oil prices are trading at elevated levels due to ongoing tensions between the US and Iran and the closure of the Strait of Hormuz.
“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,” Trump said in an interview after the meeting with Xi on Thursday.
Although China has not publicly acknowledged agreeing to energy purchases, analysts believe the move could be aimed at keeping safe options open in case the war resumes between the two sides.
The gains in oil were also recorded after the two leaders agreed that the Strait of Hormuz must remain open.
“President Xi also made clear China’s opposition to the militarisation of the Strait and any effort to charge a toll for its use,” according to a statement by a White House official on Thursday.
Furthermore, US Treasury Secretary Scott Bessent said that China will work behind the scenes to help reopen the Strait of Hormuz. “It’s very much in their interest to get the strait reopened,” Bessent said.
Also read: Crude oil price, Asian stocks rally amid Trump-Xi talks
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