Oil prices rises new confidence surrounding U.S.-China trade deal builds up
Kenneth Afor
Oil prices in the international market on Thursday bounced back to high trading as investors’ confidence in the ongoing United States and China trade deal rejuvenates. This boost brings relief to the downward pressure in an increased stockpiles of U.S. crude oil.
Brent crude futures surges by 33 cents at 0.5 percent for $62.07 per barrel after cruising a little above $1.22 per barrel at 2 percent on Wednesday.
Investors at the West Texas Intermediate (WTI) witnessed crude futures rose to 37 cents at 0.7 percent, from the last session on Tuesday, oil prices was at 88 cents lower by 1.54 percent which ended at $56.72 per barrel.
However, the Chinese government through its commerce ministry on Thursday noted that it’s keen for both countries to come to terms by quashing some of the existing tariffs slammed on each other’s import-bound goods for the possibility of reaching a ‘Phase One’ trade deal.
Invariably, the Chinese stand on trade conditions revived the market after data released shows that U.S. crude stockpiles plummeted to 7.9 million barrels last week which followed by a cut in output as well as a fall in its exports.
Meanwhile, other crude oil prices, gasoline and distillate inventories dipped by 2.8 million barrels and 622,000 barrels respectively.
Market analyst, Stephen Innes, argued that the reason for the ups and downs from oil inventories was due to the sanction by the U.S. on the Chinese tanker firm involved in conveying crude oil from Iran late last September.
He said, “The inventory builds and drops in exports are likely related to the COSCO sanctions.”
However, as the U.S. crude exports fell nearly 1 million barrels last week to 2.4 million barrels per day, the bone of contention which would be a key determinant factor in the international market is tension surrounding the protracted trade dispute between both countries.
According to sources from a close associate to Donald Trump, business a.m gathered that the long-awaited signing of the trade deal between the U.S. president and the Chinese leader could be stretched further till December as both countries are undecided on terms and meeting place.
The associate also added that reaching a ‘Phase One’ deal is still possible but it is better than not having a deal at all.
However, the Chinese government through its commerce ministry on Thursday noted that it’s keen for both countries to come to terms by quashing some of the existing tariffs slammed on each other’s import-bound goods for the possibility of reaching a ‘Phase One’ trade deal.
Invariably, the Chinese stand on trade conditions revived the market after data released shows that U.S. crude stockpiles plummeted to 7.9 million barrels last week which followed by a cut in output as well as a fall in its exports.
Meanwhile, other crude oil prices, gasoline and distillate inventories dipped by 2.8 million barrels and 622,000 barrels respectively.
Market analyst, Stephen Innes, argued that the reason for the ups and downs from oil inventories was due to the sanction by the U.S. on the Chinese tanker firm involved in conveying crude oil from Iran late last September.
He said, “The inventory builds and drops in exports are likely related to the COSCO sanctions.”
However, as the U.S. crude exports fell nearly 1 million barrels last week to 2.4 million barrels per day, the bone of contention which would be a key determinant factor in the international market is tension surrounding the protracted trade dispute between both countries.
According to sources from a close associate to Donald Trump, business a.m gathered that the long-awaited signing of the trade deal between the U.S. president and the Chinese leader could be stretched further till December as both countries are undecided on terms and meeting place.
The associate also added that reaching a ‘Phase One’ deal is still possible but it is better than not having a deal at all.