Oil petroleum futures are on their three-month highs today thanks to the progress in the US-China trade deal. Investors are ending their week on a good note as bears fail to drag prices lower.
West Texas Intermediate futures or WTI crude oil prices steady today, dipping only by 0.03% or 0.02 points in trading sessions. Oddly enough, the news from China failed to send WTI crude prices rallying.
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In the meantime, as WTI steady, Brent oil prices are rallying in trading sessions. The benchmark for Atlantic based oil, Brent oil contract rose 0.20% or 0.13 points this Friday’s trading.
However, despite WTI crude oil prices failing to rally today, it has successfully recovered from its steep decline in the third quarter. Prices have steadily kept their momentum in trading, immediately covering losses.
Earlier yesterday, oil petroleum prices were reported contracting, however, during the latter half of the day, prices recovered. So, looking at it, prices are near to their seventh day of consecutive gains.
Ho Ho Ho
Investors are entering next week, Christmas week, on a winning streak euphoria. The feel-good effect of the US-China trade war helps prices remain high.
Yesterday, US Treasury Secretary Steven Mnuchin said that Washington and China are most likely to sign the deal in January. Oil petroleum prices immediately react to the good news, relieving some of the uneasiness on investors’ feelings.
According to Mnuchin, the first phase of the deal is already complete, meaning that both parties have settled their concerns. However, the US official added that it is still undergoing a technical “scrub” as he referred to it.
Mnuchin confirmed to the press that the deal has already been finalized on paper and is translated. He added that it cannot be subjected to any more renegotiations.
The deal will also help US farmers as Beijing agreed again to buy US agricultural goods. In turn, Washington vowed to cancel its new round of sanctions against Chinese goods.
But despite these, the rally of oil petroleum prices remains limited thanks to investors wanting more details about the agreement. Looking at it, prices are somewhat bouncing from negative to positive territories in recent trading sessions.
Just a few days after the ceasefire, China removed oil petroleum goods on its sanction list of US imports.
About six chemical and crude derivatives were freed from the list according to the Chinese Finance Ministry. The exemption will take effect for 12 months and it will end on December 26, 2020.
The products removed include both low and high-density polyethylene, which are petrochemical products. It also includes white oil and food graded petroleum wax.
Aside from that, China also removed about 5% sanctions prepared for US propane imports taking place later this month.
However, the 25% levies already imposed on US propane imports will remain. The said the imposition of sanctions occurred last September after months on issues and uncertainties.
According to official data, about 150,000 barrels per day of US oil petroleum is consumed daily by Chinese refiners. So, the dispute between the two giant economies became a big factor for traders.