Singapore: Oil pared a weekly gain as investors weighed signs of progress in the prolonged US-China trade war that’s undermined global crude demand.
While futures in New York lost 0.5% in early Asian trade, oil is still up 1.2% for the week. The US and China have agreed to roll back tariffs on each other’s goods in phases as they work toward a deal, both sides said. Renewed trade optimism offset swelling American crude inventories and indications Opec and its allies won’t make deeper cuts to supply.
Oil is still down about 14% since an April peak as the trade spat sapped crude consumption and global supplies expanded. The Organization of Petroleum Exporting Countries (Opec) and its partners will likely keep output steady when they meet next month as markets are on track to re-balance, according to Goldman Sachs Group Inc. and Trafigura Group Ltd.
West Texas Intermediate for December delivery lost 27 cents to $56.88 a barrel on the New York Mercantile Exchange as of 9:43 am Singapore time. The contract rose 80 cents to $57.15 on Thursday.
Brent for January settlement fell 17 cents, or 0.3%, to $62.12 a barrel on the London-based ICE Futures Europe Exchange. The contract is up 0.7% this week. The global benchmark crude traded at a $5.21 premium to WTI.
This story has been published from a wire agency feed without modifications to the text.