WTI Crude: Oil prices fall but hold near three-month high on trade deal agreement
WTI Crude: Oil prices fell but remained near three-month highs on Monday after the United States and China agreed to an initial trade deal, a move market participants said could stoke oil demand and boost trade flows.
WTI Crude: Oil prices fell but remained near three-month highs on Monday after the United States and China agreed to an initial trade deal, a move market participants said could stoke oil demand and boost trade flows. The United States and China cooled their trade war on Friday, announcing a "phase one" agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods.
Brent crude oil futures fell 23 cents, or 0.4% to $64.99 a barrel by 0101 GMT, after closing at a near three-month high on Friday. West Texas Intermediate crude was down 23 cents or 0.4% to $59.84 a barrel.
See Zee Business Live TV streaming below:
"It seems the market has now fully priced the phase 1 trade agreement so we are going to need further news if we are going to push through the important (technical) resistance that is just ahead of crude oil," said Michael McCarthy, chief market strategist at CMC Markets.
The last-minute agreement that averted additional tariffs on Chinese goods totalling $160 billion lifted oil prices on Friday but investors remained cautious on Monday as they awaited details of the trade deal that is yet to be officially signed.
U.S. Trade Representative Robert Lighthizer said on Sunday the deal will nearly double U.S. exports to China over the next two years and is "totally done" despite the need for translation and revisions to its text.
China`s State Council`s customs tariff commission said on Sunday that it has suspended additional tariffs on some U.S. goods that were meant to be implemented on December 15.
Still, concerns of China`s slowing economy stoked worries of slowing oil demand in the key consumer after policy sources said China plans to set a lower economic growth target of around 6% in 2020 from this year`s 6-6.5%.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
08:55 AM IST