WTI Crude Oil Supported by Expectations for Signing of US-China Phase One Trade Deal

WTI crude oil prices are holding steady amid increasing hopes for the US-China phase one trade deal shortly, after Trump confirmed that the

Arslan Butt•Monday, December 23, 2019•1 min read

WTI crude oil prices are holding steady amid increasing hopes for the US-China phase one trade deal shortly, after Trump confirmed that the two nations were getting close to signing the deal. At the time of writing, WTI crude oil is trading around $60.24 per barrel.

Although the phase one deal was announced back in October after high level meetings in October, the finalizing of it was delayed, escalating trade tensions all over again. For now, the interim trade deal is expected to be signed by early January, and will see the US reducing tariffs on some Chinese imports in exchange of increased US farm product imports by China.

For most of 2019, the US-China trade war has dictated moves in global oil prices and caused crude oil to trade bearish despite the OPEC stepping in with production curbs. The improvement in US-China trade tensions have caused analysts to upgrade their outlook for crude oil demand growth in 2020, further supporting the recent bullishness in oil prices.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.