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Hazloc Heaters
Copper Tip Energy
Hazloc Heaters

Oil Pares Third Weekly Gain Amid Mixed Signals on Trade Deal

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These translations are done via Google Translate

By Saket Sundria and Grant Smith

(Bloomberg) Oil pared a third weekly advance amid mixed signals on a trade agreement between the U.S. and China, which would end an impasse that has weighed on the global economy and fuel demand.Futures slipped 0.4% in New York, yet remained on track for a weekly increase. China’s vice premier invited U.S. trade negotiators to Beijing for further talks, fanning hopes the deadlock could be resolved. However, President Donald Trump is expected to sign a bill supporting Hong Kong protesters, a move that may complicate relations between the two biggest economies.

Oil has rebounded by about $7 since early October as fears of a potential global recession have receded, and on hopes for a breakthrough in the trade standoff. Yet, negotiations between Washington and Beijing have taken longer than expected, and concerns that surging U.S. supplies and constrained demand growth will unleash a new surplus have kept crude prices about 12% below this year’s peak.

Oil headed for its longest run of weekly gains in seven months

“The first part of a trade war easing is yet to be agreed and has taken longer than expected, making markets fear that the deal would evaporate,” said Michael Poulsen, an analyst at Global Risk Management Ltd.

West Texas Intermediate for January delivery fell 23 cents to $58.35 a barrel on the New York Mercantile Exchange as of 8:49 a.m. local time, after settling at $58.58 on Thursday. Prices are heading for a third weekly increase, the longest run in seven months.

Brent for January settlement lost 9 cents to $63.88 a barrel on the London-based ICE Futures Europe Exchange, and is up 1% this week. The global benchmark crude traded at a $5.49 premium to WTI.


See also: Swiss Search Vitol, Trafigura Offices as Brazil Probe Widens

There have been some signs of improvement in the oil market. Crude stockpiles at the U.S. storage hub in Cushing, Oklahoma fell last week by the most since August, according to government data on Wednesday.

Furthermore, supply risks in the Middle East have picked up again as political unrest flares in Iraq and Iran, two of the region’s biggest producers. The potential flashpoints add to other threats across members of the Organization of Petroleum Exporting Counties, including economic collapse in Venezuela and simmering discontent in Algeria.

Other oil market news
  • Kurdistan will deliver 250,000 barrels of oil daily to Iraq’s Oil Marketing Co. as early as 2020, Oil Minister Thamir Ghadhban told al-Ahad television. Crude will be exported through the Turkish port of Ceyhan.
  • The U.S. Gulf of Mexico will reach record oil-production levels of more than 1.9 million barrels a day next year, according to Rystad Energy.
  • Deeper oil output cuts within the OPEC+ deal would bring more “minuses than pluses” for Russia, Deputy Finance Minister Vladimir Kolychev said.

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