Oil prices increase slightly over US-China trade deal expectations

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Oil prices have increased slightly over the US-China trade deal expectations.

Brent crude futures for January fell 15 cents to $61.84 a barrel and December US crude futures were at $56.31 a barrel, up 11 cents, reported Reuters.

Reuters also noted that a trade deal could be reached between the two nations later in November 2019.

PVM analysts were quoted by Reuters as saying: “For all of Friday’s feel-good factor, there is no guarantee that they will put pen to paper before the end of the year. This could be problematic given that US tariffs planned for 15 December remain on the table.”

Swiss bank Julius Baer Economics Head Norbert Rücker said: “The oil market faces ample supplies with global demand almost stagnant and supplies rising from the US, Canada, Brazil and even the North Sea.

“We (…) see oil prices trading around $60 per barrel in the near term and lower longer term.”

Oil output has reduced by 1.2 million barrels per day since January 2019 due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers.

According to energy ministry data, Russia again missed its output cut target in October 2019.

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