Easing US-China tensions, OPEC’s production cut may lift crude oil prices
Oil prices rose 1% on Tuesday, supported by hopes the U.S.-China trade deal will bolster oil demand in 2020 after a prolonged dispute between the world’s two largest economies dented global market sentiment.
The Phase 1 agreement between the United States and China has been “absolutely completed,” Larry Kudlow, a top White House adviser, said on Monday, adding that U.S. exports to China will double under the deal.
Brent crude futures gained 70 cents, or 1.1%, to $66.04 a barrel by 11:20 a.m. EST (1620 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 68 cents, or 1.1%, to $60.89 a barrel.
“Oil prices are cautiously higher as the market wants to see action and not just promises on the U.S.-China trade agreement,” Phil Flynn, an analyst at Price Futures Group in Chicago, said in a note.
