Oil markets in the green, stay close to three-month highs on trade deal agreement
Oil futures are demonstrating moderate growth after China and US have agreed on phase one of the trade deal
Oil futures are mostly in the green on Monday after reaching a three-month high on Friday, December 13. This followed the US-China agreement on the first phase of their much-anticipated trade deal.
According to the charts, on Friday the ICE Crude futures rose 1.59 per cent to $65.22 per barrel. Meanwhile, WTI futures were up 1.5 per cent to $60.07 by the time the markets closed that day.
On Monday the traders have taken a wait-and-see attitude. The prices are mostly in the green zone, clinging to the three-months highs.
As of press time, Brent crude is up 0.18 per cent to $65.34, while WTI futures were up 0.12 per cent, trading at $60.14.
US and China have reached phase one of their trade agreement after 18 months of political tension that provoked intense irritation among traders.
Donald Trump approved an agreement “in principle” that would see the US roll back some of the tariffs on $360bn (€323bn, £269bn) of Chinese goods in exchange for Chinese commitments to buy US agricultural products and other concessions.
China’s commerce vice-minister Wang Shouwen also officially agreed to phase one. However, phase one needs to go through multiple legal procedures in Washington and Beijing before getting signed off.
FURTHER READING: US and China reach phase one of trade deal