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Euphoria Over Signing Phase 1 Trade Deal Supports Oil Prices

Oil prices rise on Thursday after Washington and Beijing signed the first part of the trade deal, which includes, among other things, China’s increase in U.S. energy purchases.

Recent data, which indicated a drop in U.S. oil inventories turned to be also a valuable backing for crude oil market.

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Meantime, the Brent futures with delivery in March surged by 0.56 percent, to $64,36 per barrel, while WTI light oil with February delivery rose by 0.54 percent, to $58,12 per barrel at 0834 GMT. 

China pledged in the framework of the Phase One trade pact, which marked the ceasefire in the trade war of the two world’s largest economies, to make additional purchases of U.S. oil, liquefied natural gas (LNG) and other energy products by more than $50 billion over next two years.

U.S. oil reserves contracted by 2.55 million barrels to 428.5 million barrels for the week, which ended on January 10, the Energy Information Administration (EIA) said on Wednesday. Analysts had expected oil stocks to fall by 0.47 million barrels.