WTI Crude Oil Turns Bullish Over Rise in Factory Activity in China
WTI crude oil prices are trading bullish at the beginning of a brand new week, surging by over 1% as a result a jump in factory activity in China during November. At the time of writing, WTI crude oil is trading at around $56.06 per barrel.
Crude oil ended the previous week on a bearish note, losing around 5.1% of its value during the Thanksgiving weekend over rising uncertainty about the US-China trade negotiations after US President Donald Trump signed laws protecting human rights for Hong Kong protesters. After weeks of positive signals, the latest move soured the mood in the markets, raising concerns that it could derail the progress towards a phase one trade deal between the world’s largest oil consumers.
However, crude oil received a boost into the new week over a surprising jump in factory activity in China for the first time in seven months, supported by strong domestic demand and by stimulus measures rolled out by the government. In addition, oil prices also enjoy support from rising expectations that OPEC and its allies could announce to extend crude production curbs beyond the current deadline of March 2020 till mid-2020 as a result of trade tensions weighing on oil demand.
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