WTI Crude Oil Prices Rise Over Hopes of a Trade Deal Between US and China

Crude oil prices are on the rise while markets remain optimistic that US and China will be able to strike a trade deal soon. WTI crude oil crossed $62.40 as a result, but is now trading slightly lower at around $62.

On Thursday, Donald Trump stated that he had received a “beautiful” letter from Chinese President Xi Jinping. This boosted market confidence that trade talks could get back on track and lead towards a deal soon.

Crude oil had turned bearish over escalating tensions because any drop in trade could not only reduce demand for crude oil in China, but could also cause a slowdown in global economic growth. Another key driver for the bullish growth in crude oil prices is the expectation that OPEC will continue to control oil supply in markets even as demand continues to rise.