25.2 C
New York
Monday, July 4, 2022

Oil Prices Head Higher on Trade Hopes, Signs of Slowing U.S. Output

Oil Prices Head Higher on Trade Hopes, Signs of Slowing U.S. Output© Reuters.

Investing.com – Crude prices traded higher on Monday amid news that the U.S. and China could be and signs that American oil rigs are slowing production.

New York-traded rose 47 cents, or 0.84%, at $56.27 a barrel by 7:43 AM ET (12:43 GMT).

Meanwhile, , the benchmark for oil prices outside the U.S., traded up 55 cents, or 0.85%, to $67.39, backing off of $65.62 which was also its best level in three months.

U.S. President Donald Trump and Chinese President Xi Jinping could seal a formal trade deal at a summit around March 27, given progress in talks between the two countries, the Wall Street Journal reported on Sunday.

The two countries appear close to a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods, while Beijing makes pledges on structural economic changes and eliminates retaliatory tariffs on U.S. goods.

Traders are concerned that the prolonged trade dispute would have a negative impact the world’s two largest economies – particularly on China, the largest oil importer – debilitating demand for the commodity.

Investors also breathed a sigh of relief as the most recent from Baker Hughes showed that U.S. energy firms last week cut the number of drilling rigs to the lowest in almost nine months, suggesting early signs of moderating domestic production growth.

However, some analysts were cautious with Barclays (LON:) warning over the weekend that U.S. oil output would likely increase in the second half of this year.

In other energy trading, gained 1.03% to $1.7481 a gallon by 7:45 AM ET (12:45 GMT), while advanced 0.69% to $2.0149 a gallon.

Lastly, inched up 0.03% to $2.860 per million British thermal unit.

— Reuters contributed to this report.

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

Related Articles

Stay Connected

11,295FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles