Oil prices have increased after news from Washington over the weekend revived optimism in global markets that the US and China could soon sign an interim deal to end trade dispute between the two countries.
Brent crude futures were up 27 cents at $63.66 a barrel, while West Texas Intermediate (WTI) crude rose 18 cents at $57.95 a barrel, reported Reuters.
CMC Markets Sydney chief market strategist Michael McCarthy was quoted by Reuters as saying: “It is still all about trade talks. It seems to be dominating markets action at the moment.”
An announcement made by the US national security adviser Robert O’Brien that the US-China trade deal could be possibly initiated by the end of 2019 also contributed to the rise in oil prices.
Robert’s statement comes after US President Donald Trump and China President Xi Jinping expressed their desire to sign an interim trade deal. Despite their intention on signing an initial deal, Trump also noted that he is yet to decide whether he wanted to finalise a deal, while Xi said he would not be afraid to strike back when necessary.
McCarthy further added that a move by China to protect intellectual property was also providing a supportive mood for the trade negotiations.
Meanwhile, worries remain on current events in Hong Kong, pierced by months of anti-government protests, which could dominate the progress of the on-going trade talks. Potential oil supply cut by OPEC+ until March 2020 when they meet in December 2019 at Vienna could also push prices up, according to Reuters.