23/10/2019
Reuters
Oil prices rose on Tuesday after China signaled progress in trade talks with the United States, but gains were constrained by expectations of an increase in US crude inventories.
Ended International benchmark Brent crude contracts for the trading session 74 cents higher, or 1.3 percent, to reach at the settlement of $ 59.70 a barrel.
Closed US Brent crude contracts for West Texas Intermediate high 85 cents, or 1.6 percent, to $ 54.16 a barrel.
Deputy Minister of Foreign Affairs of China Liucheng today that if China and the United States have made progress in trade talks and that any problems can be solved as long as the two sides respect each other.
US President Donald Trump said on Monday efforts to end the trade war with China were proceeding well and that negotiators from both countries were working on the text of the first phase agreement to be signed by their leaders next month at their APEC summit.
ANZ bank wrote in a note "cautious optimism prevailing commodity markets amid signs near the signing of a commercial agreement between the United States and China."
Oil prices have also come under pressure from expectations of an increase in crude inventories in the United States, where inventories are expected to continue rising for the sixth consecutive week.
The IMF predicted last week that the effects of the US-China trade war around the world would slow global growth in 2019 to 3 percent, the weakest rate in a decade.
Goldman Sachs cut its forecast for global oil demand growth for 2020 to 1.3 million barrels per day from 1.4 million barrels earlier. Expectations of the US shale oil production growth for next year also trimmed to 0.7 million barrels per day, compared to a previous forecast at one million barrels per day.
