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21.05.201908:20:00UTC+00Oil Futures Extend Gains On Geopolitical Tensions

Crude oil futures are up on Tuesday, extending gains from previous session, amid an escalation in tensions in the Middle East and on speculation the OPEC will continue to produce less crude for some more time.

However, gains are somewhat limited due to lingering concerns about U.S.-China trade war and its likely impact on global energy demand in the near term.

According to reports, Yemen's Iranian-allied Houthi rebels attacked a Saudi airport and military base with a bomb-laden drone, an assault acknowledged by the kingdom as Mideast tensions remain high between Tehran and the United States.

West Texas Intermediate Crude oil futures for June are up $0.30, or 0.48%, at $63.40 a barrel.

On Monday, crude oil futures for June ended up $0.34, or 0.54%, at $63.10 a barrel.

Meanwhile, traders are awaiting weekly U.S. crude inventories reports from the American Petroleum Institute (API) and Energy Information Administration (EIA). API is scheduled to come out with its report later in the day, while EIA's report is due Wednesday morning.



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