Oil prices jump on fresh trade hopes

Thursday, 12. December 2019 16:24

Crude prices surged on Thursday after the United States President Donald Trump asserted that Washington and Beijing are "getting very close to a big trade deal." A report said that the US offered to cut 50% tariffs on Chinese goods imports that are set to take effect on Sunday, sending a positive signal regarding the potential trade agreement.

Meanwhile, the International Energy Agency (IEA) warned that global oil inventories in the first quarter of 2020 could rise by 700,000 barrels per day, despite the output cuts agreed at the Organization of the Petroleum Exporting Countries (OPEC) summit in Vienna last week. The most valuable oil company in the world, Saudi Aramco, achieved a $2 trillion cap earlier on Thursday, seeing its shares growing to 38.7 riyals ($10.32).

Brent for February delivery gained 1.19% to $64.77 per barrel at 10:23 am ET while West Texas Intermediate crude futures for January traded 1.12% higher at the same time.

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