WTI crude prices rose in early Friday trading, approaching the $60 per barrel mark. Oil prices have recently been under pressure as markets began to price in the fallout from US trade policies and the escalating trade conflict with China — a dispute expected to dampen economic activity and reduce oil demand. At the same time, downward pressure is also coming from the supply side, amid speculation that OPEC+ may bring forward planned output increases. Against this backdrop, it is unsurprising to see prices recovering from recent lows, driven by growing optimism over a possible resolution to the US-China trade dispute. As the world’s two largest oil consumers, any easing of tensions between them is likely to improve the outlook for global oil demand and could pave the way for further gains in crude prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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