Oil Climbs on Optimism Spurred by Historic US-China Truce
(Bloomberg) -- Oil rose to the most in more than a week as the preliminary trade truce between the U.S. and China fanned optimism about economic growth.
Futures rose as much as 1.4% in New York. Under the settlement between the world’s largest economies, China pledged to increase purchases of U.S. commodities. The landmark deal helped fuel a record-setting rally in American equities.
The trade deal “was clearly supportive,” said Michael Hiley, head of OTC energy trading with LPS Partners.
West Texas Intermediate crude for February delivery advanced 64 cents to $58.45 a barrel at 10:48 a.m. on the New York Mercantile Exchange after earlier rising the most since Jan. 8.
Brent for March settlement rose 59 cents to $64.59 on the ICE Futures Europe exchange. The global benchmark crude traded at a $6.18 premium to WTI for the same month.
See also: Commodity Markets Shrug at China’s $95 Billion Purchase Pledge
China pledged $52.4 billion of additional purchases of American energy this year and next, although it didn’t say whether it would lift a retaliatory 5% tariff on U.S. crude. The Asian nation, whose oil imports from the U.S. peaked at 14.7 million barrels in January 2018, would need to boost purchases to 21.9 million barrels a month this year and 36.2 million barrels in 2021 to fulfill the pledge.
--With assistance from James Thornhill, Elizabeth Low and Grant Smith.
To contact the reporter on this story:
Sheela Tobben in New York at vtobben@bloomberg.net
To contact the editors responsible for this story:
David Marino at dmarino4@bloomberg.net
Joe Carroll, Mike Jeffers
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally