Oil rises as fears of ship attacks and seizures persist

Oil prices rose on Friday as market concerns persisted over ship attacks and seizures. Brent crude oil futures rose 60 cents, or 0.57%, to $106.32 a barrel by 0100 GMT, while U.S. West Texas Intermediate futures were up 54 cents, or 0.53%, to $101.71.

A ship was reported seized by Iranian personnel off the United Arab Emirates and headed for Iranian waters on Thursday, while an Indian cargo vessel carrying livestock from Africa to the United Arab Emirates was sunk on Wednesday in waters off the coast of Oman. Iran's Revolutionary Guards said 30 vessels had crossed the Strait of Hormuz since Wednesday evening, still far short of 140 that were typical daily before the war. The White House said U.S. President Donald Trump and Chinese President Xi Jinping had agreed on the need to keep the nearby Strait of Hormuz shipping lane open. Yang An, analyst at Haitong Futures, said the main driver of oil prices was still tight supply, adding, "Oil prices swung several times yesterday but still closed near the day's high. Ships passing through the strait eased some market concerns, but not enough to change the strong trend driven by tight supply."

Donald Trump and Xi Jinping are set to meet on Friday to wrap up a two-day state visit. U.S. Trade Representative Jamieson Greer said on Friday morning that China was being very pragmatic about involvement with Iran, and it was important to China to have the Strait of Hormuz open.