Oil rates drop on Monday, but the prices decrease was capped by expectations that the United States and China will soon come to a trade deal scoring, with U.S. President commenting that a bargain would be concluded “very shortly”.
Meantime Brent crude futures with delivery in February eased by 0.39 percent, to $65,88 per barrel, while U.S. WTI light crude lost 0.46 percent, to $60,16 per barrel at 8.33 GMT.
An interim commercial deal was announced recently this month as part of a bid to break up the months-long retaliative trade spat, which has strongly deteriorated markets and affected global growth.
Recall the U.S. is awaited to diminish some punitive duties in return for a propped up increase in U.S. farm purchases by Chinese importers, following the terms of the phase one trade deal that is due to be concluded in January 2020.
The market pressure alleviation improved business sentiment and boosted the perspective for economic growth and fuel demand.
Meantime, the additional pressure on oil market put the increased number of active crude rigs in U.S. during the last week, that ended on December, 20, marking the highest result since February 2018.
It’s vital to mention, that U.S. oil drillers added last week 18 oil rigs, to reach the total amount of active rigs up to 685, the most since last month, according to Baker Hughes report.