Crude oil prices rose more than 1% Tuesday on hopes for a U.S.-China trade agreement and optimism Washington could roll back some of the tariffs it has imposed on Chinese imports, Kallanish Energy learns.
Brent crude futures gained 84 cents, or 1.4%, to settle at $62.94 a barrel, while West Texas Intermediate crude futures gained 69 cents, or 1.2%, to settle at $57.23/Bbl.
China is pushing U.S. President Trump to remove more tariffs imposed in September as part of a so-called Phase 1 trade deal, which would help to ease the broad economic damage inflicted by the trade dispute between the world’s two biggest oil consumers.
Opec secretary-general Mohammad Barkindo said the oil market outlook for 2020 may be brighter than previously forecast, appearing to downplay any need for deeper production cuts.
“Based on the preliminary numbers, 2020 looks like it will have upside potential,” Barkindo told a briefing, Reuters reported.
Opec also said it would supply a diminishing amount of oil in the next five years, as output increases primarily from U.S. shale plays.
Opec’s production of crude oil and other liquids is expected to decline to 32.8 million barrels per day (Mmbpd) by 2024, the cartel said in its 2019 World Oil Outlook.
The U.S. Federal Reserve’s interest rate cut last week, recent weakness in the dollar and improved U.S. jobs growth in October also provided support, analysts said.
Most Opec members, and 10 non-Opec producers led by Russia, collectively known as Opec+, have been cutting production by 1.2 Mmbpd since the first of the year, a deal slated to last through March 31, 2020.
Iranian oil minister Bijan Zanganeh Monday said he expects further production cuts to be agreed at the next meeting of the group in December.
This post appeared first on Kallanish Energy News.