Investing.com – Oil prices rose on Monday morning in Asia, after hitting the lowest level in 18 months last week. A drop in oil rigs in North America may have pushed up prices.
Despite the slight climb, oil is about to mark a first yearly fall in three years on fears of a global glut.
Crude Oil WTI Futures for February delivery gained 0.93% to $45.74 per barrel at 12:47AM ET (04:47 GMT) on the New York Mercantile Exchange. London’s Intercontinental Exchange showed that Brent Oil Futures for March delivery also edged up 0.98% to $53.72 a barrel.
The U.S. added two oil rigs but Canada slashed as many as 43 as of Dec. 28 from a week earlier, according to data out Friday from energy services firm Baker Hughes.
“We postulate for a gentle recovery for oil prices into the first quarter of 2019 though marked volatility can snap oil prices south in lieu of market uncertainties and key events such as Brexit, U.S.-China trade truce deal, U.S. monetary policy, U.S.-Iran sanctions,” Benjamin Lu Jiaxuan, a commodities analyst at brokerage firm Phillip Futures, told Reuters.
Market sentiment was also lifted up by some positive news in the ongoing trade negotiations between the U.S. and China.
U.S. President Donald Trump said he had a “long and very good” phone call with Chinese President Xi Jinping.
“Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!” Trump tweeted on Saturday.
For many, Trump’s policy decisions were a key reason behind the drops in oil prices this year.
“Trump has reigned as the ultimate controller of oil prices this year because everything from sanctions against Iran, the trade war with China and even tensions with Saudi Arabia, he’s been involved. While prices won’t fall further from here, the pace of increase will also be quite gradual next year,” Sungchil Will Yun, a commodities analyst at HI Investment & Futures Corp., told Bloomberg.