Oil Prices Rise on Renewed Trade Hopes Ahead of Talks By

Written by Admin

© Reuters. — prices rose on Wednesday after various unconfirmed reports breathed life into hopes that the U.S. and China can at least agree a temporary and partial truce to their multi-faceted dispute when trade talks resume on Thursday.

By 8:20 AM ET (1220 GMT), the U.S. benchmark future was at $53.28 a barrel, up 1.2% from late Tuesday. The international benchmark blend was up 1.2% at $58.95 a barrel.

Bloomberg reported that China had expressed its continued willingness to strike a limited deal, while the Financial Times reported that China was willing to buy up to 10 million tons more in U.S. soybeans a year. That would be worth around $3.25 billion at current prices.

President Donald Trump said at the weekend he’s not interested in a partial deal and Commerce Secretary Wilbur Ross said last month that the dispute couldn’t be solved just by China buying “a little more pork or soybeans.”

The news nonetheless supported a market that has been beaten down in recent days by fears over global demand. Russell Hardy, chief executive of Vitol, one of the world’s largest oil traders, was quoted by wires on Wednesday as telling a conference that global demand could grow by as little as 750,000 barrels a day this year, well below the forecast of OPEC and the International Energy Agency.

“Concerns over the future are winning,” Energy Intelligence reported Hardy as saying. “The risk premium vanished pretty quickly after the Saudi attacks.”

He and other senior executives from the trading industry all said they say averaging less than $60 a barrel next year, a figure that may squeeze the cash flow of international majors who budget for around that figure.

Demand fears were clearly in focus after Tuesday’s data from the showing an estimated 4.1 million rise in inventories last week, well ahead of the expected 1.41 million barrel increase. Official government will be released at 10:30 AM ET (1430 GMT).

Elsewhere, were up 1.2% at $1.6004 a gallon, while futures were down 0.6% at $2.2760 per 10,000 MMBtu.

Elsewhere, were up 1.2% at $1.6004 a gallon, while futures were down 0.6% at $2.2760 per 10,000 MMBtu.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

About the author


Leave a Comment