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Oil Rebounds From High Levels on Trade Deal Doubts

Oil rates slipped from almost 2-months highs on Friday amid continuing uncertainty over whether Sino-U.S. sides could reach a preliminary trade agreement notwithstanding the likely extension of OPEC supply cut.

oil rates slipPhoto: Pixabay

This ongoing trade friction was more than sufficient to offset reports of a likely extension of supply cuts by main crude producers, which pushed crude rates higher during the prior session.

The OPEC oil export members and its partners are likely to extend existing restrictions on oil production until mid-2020 at the Vienna meeting in December, while Russia will support Saudi Arabia’s efforts to stabilize prices amid the IPO of oil giant Saudi Aramco, OPEC sources told Reuters.

China called on senior U.S. officials to a new round of trade discussion in Beijing amid ongoing efforts to achieve at least a preliminary agreement, according to WSJ report on Thursday, quoting unnamed sources.

Brent futures with delivery in January eased by 0.08 percent, to $63.94 per barrel, while WTI light oil lost 0.29 percent, to $58,41 per barrel at 9.29 GMT on Friday.

Investors are focused on key economic data from the U.S., France and Germany, which will be published later on the day.