Oil rises to 6-week high amid U.S.-China trade optimism

Jacqueline Melliek, Bloomberg

Publishing

Tuesday, November 5, 2019 3:20 PM (CST)

Investors rose to their highest level in six weeks as investors remain optimistic that the US and China are getting closer to trade agreements.

On Tuesday, New York futures rose 1.2 percent. China said, according to people familiar with the plan, President Xi Jinping is reviewing the US position where he is willing to meet Donald Trump and sign the first stage of the trade deal.

Josh Graves, chief market strategist at RJ O, said, “The United States is willing to reverse existing tariffs, and talking about it and trying to achieve something for this one-step deal will move oil.” Friends & colleagues in Chicago. "If everything is going on with trade, and there's no change, you'll continue to be interested in the market."

Crude prices fell about 14{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} at the end of April, as the spat between Beijing and Washington threatened demand growth prospects. OPEC also reduced its estimates for the amount of oil it should pump over the next few years and predicted that global market share would decline by mid-10 years as US shale supply surged.

Previous: Highest Oil In A Week In US-China Trade Trade

The Chinese president, according to those who are familiar with the issue, is trying to roll back US tariffs on China's imports of $ 336 billion before President Xi agrees to a partial deal agreement. Negotiators called on the Trump administration to remove tariffs on about $ 110 billion of goods imposed in September and lower its tariff rate by 25 percent to about $ 250 billion, which began last year.

West Texas Intermediate for December delivery added 69 cents at $ 57.23 a barrel on the New York Mercantile Exchange.

Brent oil for the compromise in January rose 83 cents, ending the session at $ 62.96 on the London-based ICE Futures Europe Exchange. Crude oil on a global basis was traded at WTI for $ 5.67 in the same month.

Brent's closest time spread has been trading as the strongest reversal in tight supply since September.

Meanwhile, according to average estimates from analysts surveyed by Bloomberg, US crude oil inventories are expected to increase by 2 million barrels last week. The industry-sponsored American Petroleum Institute will release its weekly petroleum inventory report on Tuesday and the Energy Information Administration will release its aggregate on Wednesday.

© 2019 Bloomberg L.P.