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Brent crude futures were at $70.79 a barrel at
1035 GMT, up 56 cents or 0.80%.
U.S. West Texas Intermediate (WTI) crude futures were at $61.35
per barrel, up 31 cents or 0.51%.
The Saudi state news agency quoted Energy Minister Khalid al-Falih
as saying that Aramco had halted pumping on the East-West
pipeline until the damage was evaluated, but that production and
exports were continuing without disruptions.
Falih said the attack was an "act of terrorism" that targeted
the world's global oil supply.
Saudi Arabia said earlier that two of its oil tankers were among
those attacked off the coast of the United Arab Emirates on
Sunday, incidents which ratcheted up tensions in the world's top
oil exporting region.
A U.S. official said Iran was the likely culprit, but Iranian
officials denied responsibility for the incident.
A television station run by Yemen's Houthi group said on Tuesday
the Iran-aligned movement had launched drone attacks on Saudi
installations, without identifying the targets or time of the
attacks.
Tehran has been embroiled in an escalating war of words with the
United States over stricter U.S. sanctions, which have cut its
oil exports and tightened global supply.
A fifth of global oil consumption passes through the Strait of
Hormuz from Middle East crude producers to global markets.
The market was also holding out some hope for flagging
U.S.-China trade talks as both sides expressed positive
sentiments which may signal that the negotiations are not yet
dead.
"The brinkmanship between Washington and Beijing is now seen as
a significant hurdle to the growth in global oil demand.
Meanwhile, rising geopolitical tensions in the Middle East will
further promote volatility."
The negotiations between the United States and China appeared
headed towards success last week but have largely unravelled
over U.S. accusations that Beijing sought vast, last-minute
changes.
China on Monday ignored a warning from U.S. President Donald
Trump and moved to impose higher tariffs on a range of U.S.
goods including frozen vegetables and liquefied natural gas.
But the Chinese government's top diplomat, State Councillor Wang
Yi, indicated on Monday that Beijing hoped for a compromise:
"Both countries' negotiating teams have the ability and wisdom
to resolve each other's reasonable demands."
Trump on Monday said he expected to speak to Chinese President
Xi Jinping at a G20 summit in late June and have "probably a
very fruitful meeting".
"The U.S. president's comments likely tilted the balance in
favour of the optimists, who continue to expect a rapprochement
despite last week's major setback in trade negotiations,"
analyst Vandana Hari of Vanda Insights said.
(For a graphic on 'OPEC production' click https://tmsnrt.rs/2VXGPMh)
(Editing by Dale Hudson and Jon Boyle)
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