SINGAPORE. – Oil prices climbed higher yesterday as investors kept the faith with hopes that a fully fledged US – China trade deal is in the pipeline, set to stoke oil demand in the world’s biggest economies.
Brent crude oil futures LCOc1 were up 11 cents, or 0,2 percent, to $65,45 a barrel by 0737 GMT, while West Texas Intermediate crude CLc1 was up nine cents, or 0,2 percent, to $60,30 a barrel.
Under a partial trade agreement announced last week, Washington will reduce some tariffs on Chinese imports in exchange for Chinese purchases of agricultural, manufactured and energy products increasing by about $200 billion over the next two years.
“Crude (prices) should still see further bullish momentum from the US – China (phase) one deal and on expectations this week’s EIA crude oil inventory report will see a . . . draw,” said Edward Moya, senior market analyst at OANDA. – Reuters.