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Oil Up After OPEC Cut Supply Forecast; Sino-U.S. Trade Hopes Also Supportive

Published 10/11/2019, 12:14 AM
Updated 10/11/2019, 12:16 AM
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Investing.com - Oil prices gained on Friday in Asia after the Organization of Petroleum Exporting Countries (OPEC) indicated it expected supply from non-OPEC sources to grow slightly less than previously thought.

Non-OPEC supply is expected to grow 2.20 million barrels per day, down from 2.25 million in OPEC’s September report. OPEC also trimmed forecasts for global demand growth this year.

U.S. Crude Oil WTI Futures gained 0.5% to $53.81 by 12:12 AM ET (04:12 GMT) following the report. International Brent Oil Futures also rose 0.5% to $59.38.

Also boosting oil late in the day was a New York Times report that the United States and China might be close to announcing a partial trade deal later this week, averting a further escalation in trade tensions.

High-level officials from the two sides are currently meeting in Washington.

U.S. President Donald Trump said overnight that the first day of trade talks were “very, very good.” The president added that he is meeting with Chinese Vice Premier Liu He later in the day.

It was previously reported that the Chinese negotiating team might leave Washington earlier than planned due to worsening relationship with the U.S. Earlier this week, the U.S. blacklisted eight Chinese technology firms.

But things were looking more optimistic yesterday after some reports suggested that China is open to a partial trade deal and even offer to purchase more U.S.-made agricultural products.

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