Oil petroleum traders rejoice as prices rally after Trump agrees to a partial trade deal with Beijing. Bulls advance this Friday, pushing prices to ranges last seen in September.
The WTI crude oil contract surged 0.52% or 0.31 points in trading sessions. Prices go forth from their previous close of $59.18 to $59.49.
WTI crude prices even extended this reach from $59.30 to $59.61 this Friday.
The contract may have entered the last month of at the year around $55.42. Fortunately for bulls, it eventually picked up traction thanks to OPEC and trade war news.
Meanwhile, Brent oil futures leaped higher by 0.65% or 0.42 points in this Friday’s trading session. Brent oil prices move up from its last close of $64.20 to $64.62.
The day’s ranges of the Brent oil prices started at $64.35 to $64.71.
Oil petroleum prices are now on their second day of gains. The beginning of the week was rough on prices due to concerns about Trump’s supposed tariff enforcement on December 15.
Fortunately, as jitters started to ease early on as some officials close to the issue started giving hopeful hints. Reports about the delay of Trump’s tariffs started to circulate mid-way through the week.
And just in, the United States President Donald Trump finally signed an initial trade deal with China. This meant as a sigh of relief for traders as Beijing avoids another round of sanctions.
The agreement would also loosen the existing levies on exports, and in turn, China will purchase more US farm goods. US officials confirmed the agreement earlier.
The good news didn’t only affect oil petroleum prices; it also helped the US dollar steady in sessions. US stocks also rallied in sessions, thanks to the good news.
Doubts on OPEC’s Plans
Perhaps what initially aided the rise of oil petroleum prices this December is the deeper cuts from OPEC. But some experts still doubt the efforts of the bloc to prop up prices.
Yesterday, the International Energy Agency said that the deeper output cuts wouldn’t be enough to keep prices. After all, the global supply glut and the global economic slowdown is keeping prices down.
The agency estimates that there would still be an excess surplus of about 700,000 barrels per day in the first quarter of 2020. That is even if the countries strictly follow the cartel’s deal in Vienna.
The International Energy Agency left its global oil petroleum demand growth forecasts unchanged for this year and next year. That would be about 1 million (2019) and 1.2 million (2020) barrels per day.
This is not good news for OPEC’s de facto leader, Saudi Arabia, and its state-owned Aramco. Just recently, the oil giant made its debut in the oil market and made a huge clamor in international headlines.
On Wednesday, the oil petroleum company hit its local stock exchange, the Saudi Tawadul. Aramco now officially holds the crown for the world’s biggest initial public offering.
Prior to the OPEC’s decision earlier this month, the Kingdom of Saudi Arabia has already been pushing for deeper and extended cuts.