Home Commodity Market News Oil Prices Rise on Trade Deal Hopes; API Reports Surprise Increase in...

Oil Prices Rise on Trade Deal Hopes; API Reports Surprise Increase in Crude Stocks

0
6
Oil Prices Rise on Trade Deal Hopes; API Reports Surprise Increase in Crude Stocks© Reuters.

Investing.com – Oil prices rose on Thursday in Asia amid some positive trade news that suggested the U.S. and China would be able to reach a deal by the early March deadline.

Citing sources familiar with negotiations, Reuters reported that U.S. and China have begun to outline a deal to end their trade dispute.

“The broad outline of what could make up a deal is beginning to emerge from the talks,” one of the sources said. He warned that the talks could still fail as China has not yet met the demands requested by U.S. President Donald Trump’s administration on issues related to structural changes to China’s economy.

Asian equities advanced following the news, while oil prices also traded in the green.

U.S. was up 0.4% at $57.39 by 1:28 AM ET (06:28 GMT). International also rose 0.2% to 67.19.

Oil prices have been receiving some support from supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

OPEC, along with Russia, agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overhang from growing.

Oil prices traded slightly lower at the start of Asian trading on Thursday after the American Petroleum Institute (API) reported a surprise increase in crude stocks.

U.S. crude stocks for the week ended February 15 were up 1.3 million barrels, the API said. Analysts previously expected U.S. crude stocks to have increased by 3.5 million barrels for the same period.

The API report came after the Energy Information Administration (EIA) said on Tuesday in a monthly report that U.S. crude output, which soared by more than 2 million bpd in 2018 to a record 11.9 million bpd, is set to keep rising thanks to booming shale oil production.

Official oil inventory and production data by the EIA are due to be published later in the day.

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: Investing.com