Oil pares weekly gain as investors weigh trade deal progress

Singapore: Oil pared a weekly gain as investors weighed signs of progress in the prolonged US-China trade war that’s undermined global crude demand.

While futures in New York lost 0.5% in early Asian trade, oil is still up 1.2% for the week. The US and China have agreed to roll back tariffs on each other’s goods in phases as they work toward a deal, both sides said. Renewed trade optimism offset swelling American crude inventories and indications Opec and its allies won’t make deeper cuts to supply.

Oil is still down about 14% since an April peak as the trade spat sapped crude consumption and global supplies expanded. The Organization of Petroleum Exporting Countries (Opec) and its partners will likely keep output steady when they meet next month as markets are on track to re-balance, according to Goldman Sachs Group Inc. and Trafigura Group Ltd.