Oil prices fixed a bit on Tuesday, supported by signs of progress in talks on resolving the U.S.-China trade war. Contrarily, gains were held by lingering anxiety that a decline in the global economy could damage crude demand.
Brent crude futures stood at $59.10 a barrel, rose up 14 cents, or 0.2%, from their previous settlement. Brent was down 0.8% at $58.96.
WTI crude futures progressed 18 cents or 0.3%. In the last session, West Texas Intermediate down 0.9 lower at $53.31 a barrel.
United States President said on Monday that his efforts to end the U.S.-China trade war was going well. Also, negotiations from the two nations work to establish a Phase 1 trade deal text from their leaders to sign at the APEC summit.
ANZ Bank said commodity markets were carefully optimistic amid signs a trade deal. It was close to being signed by the United States and China.
Brent settled about 22% from its April peak. Also, WTI is at 20% from its maximum reached in April.
Moreover, there are signs of soothing tensions between the U.S. and China. Contrarily, U.S. Commerce Secretary said that an initial trade deal need not be signed next month highlighting the desire to get the right deal.
That lifts the risk of further extended negotiations and feed market anxiety about the chance for a reliable deal. China is looking for $2.4 billion in a penalty against the U.S. for non-compliance with a WTO ruling in the case of a tariff.
On the stock side, U.S. crude stockpiles expected to have surged for the sixth straight week. Also, distillates and gasoline stocks likely dropped in the next week to Oct. 18.
Oil Prices Fall Despite Positive Sino-U.S. Trade News
Oil prices curved lower on Tuesday in Asia in spite of signs of easing tensions between China and the U.S. These two are the world’s biggest oil importers.
U.S. Crude Oil WTI Futures lost 0.3% to $53.37. International Brent Oil Futures also dropped 0.2% to $58.84.
Oil prices traded higher earlier in the day. This is after the U.S. Furthermore, President said during a Cabinet meeting that China has begun buying American agriculture products.
China’s Vice Foreign Minister, Le Yucheng said the two economies have achieved some progress in trade negotiations. He also added the world wants China and the United States to end their trade war.
Chinese President Xi Jinping and President Trump will sign a partial deal in Chile next month. Also, it is during the Asia-Pacific Economic Cooperation meetings.
Crude oil prices stayed in the slump, with ongoing economic weakness weighing on sentiment. This is according to ANZ Bank.
However, oil markets ceased their gains and traded in the red on Tuesday afternoon.
U.S. tariffs on China due in December might stop if the first phase of trade talks between the two sides goes well.
Moreover, Trump said the deal includes China acknowledging to raise its U.S. agricultural purchases. It will be between $40 billion and $50 billion from $8 billion to $16 billion. Also, it will be in addition to making reforms on financial services and intellectual property.
Liu said the two countries made “concrete progress” in many areas. Also, they still stressed that negotiations must be on an equal basis.