September 23, 2020

Texas oil rises a slight 0.2% pending trade agreement

The price of Texas intermediate oil (WTI) rose a slight 0.2% on Friday and closed at 57.24 dollars a barrel, on a day that reinforces the weekly earnings pending the initiation of a preliminary trade agreement between China and the United States.

At the end of the operations with live voice on the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in December advanced 9 cents compared to the previous session on Thursday.

WTI oil prices rose a little after the day fell more than 1% after the president of the United States, Donald Trump, commented that he had not agreed to reverse tariffs on China.

The comments come after officials from both countries said Thursday that China and the United States were about to reduce tariffs for a phase one trade agreement, which could be completed in the coming weeks.

In parallel, the 16-month trade war between the two largest economies in the world has slowed economic growth around the world and led analysts to reduce forecasts of oil demand, raising concerns that I can develop an excess supply in 2020.

Oil prices have also been under pressure since OPEC Secretary General Mohammad Barkindo said this week that he was more optimistic about the outlook for 2020, as it seems to minimize the need to reduce production more deeply.

It should also be noted that US oil reserves rose sharply last week when refineries reduced production and exports fell, the Energy Information Administration said on Wednesday.

Meanwhile, US energy companies They reduced this week the amount of oil platforms operating for the third consecutive week, according to the CNBC.

In this context, gasoline futures contracts expiring in December remained at $ 1.63 a gallon, and natural gas contracts expiring the same month totaled a penny to $ 2.77 per thousand cubic feet.

. (tagsToTranslate) oil (t) Texas (t) expect (t) trade agreement (t)

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