Oil rises with US-China trade tensions in focus

LONDON, Oct 15 (Reuters): Oil prices climbed on Wednesday after closing at five-month lows in the previous session, as investors weighed an escalation in trade tensions between the US and China and the International Energy Agency's prediction of a supply surplus in 2026.

Brent crude futures were up 53 cents, or 0.85 per cent, at $62.92 a barrel by 1300 GMT, while US West Texas Intermediate futures gained 62 cents, or 1.06 per cent, to $59.32 a barrel.

"Oil prices are currently influenced by trade tensions and market risk sentiment," said UBS analyst Giovanni Staunovo.

The trade dispute between the US and China, the world's two largest oil consumers, has reignited over the last week, with both countries imposing additional port fees on ships carrying cargo between them. The tit-for-tat moves risk disruptions to global freight flows and could impact major routes for oil.

China last week announced it would increase rare earth export controls and US President Donald Trump threatened to raise tariffs on Chinese goods to 100 per cent and tighten software export curbs from November 1.