Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oil Prices Climb, Reversing Early Losses Before Trump Speech

Published 11/12/2019, 08:15 AM
Updated 11/12/2019, 08:16 AM
© Reuters.

© Reuters.

Investing.com - Oil prices climbed on Tuesday, reversing early losses amid hopes that U.S. President Donald Trump would use a speech later in the day to indicate progress towards resolving the protracted U.S.- China trade war.

Trump will speak at 12 PM ET (1700 GMT) at the Economic Club of New York, and investors are keen for an update on the trade talks with China after recent reports indicated that the mooted ‘phase-1’ deal may not be finalized until December.

Prices had come under pressure on Monday amid concerns over slower economic growth and the outlook for oil demand due to the fallout from the 16-month trade conflict between the world’s two largest economies.

Brent crude, the global benchmark, was up 30 cents at $62.48 a barrel by 08:07 AM ET (01:07 GMT), after falling as low as $61.90. U.S. crude futures were 13 cents higher at $56.96 per barrel.

"The oil market is in a holding pattern," said Tamas Varga of oil broker PVM. "The next $5-$10 move will be decided by economic and trade considerations."

Trump "is widely expected to delay his decision to impose tariffs on European car and auto part imports and will also shed further light on the status of the trade negotiations with China," Varga added.

"Market participants continue to believe in a (partial) trade agreement to be signed soon," said Carsten Fritsch, analyst at Commerzbank (DE:CBKG). "Increasing doubts about this would put oil prices under pressure."

Oil prices were also underpinned by U.S. data showed that crude inventories at Cushing, the delivery point for WTI, fell by about 1.2 million barrels in the week to Nov. 8, traders said, citing market intelligence firm Genscape.

Cushing inventories had grown for five weeks in a row through Nov. 1, according to government data.

Brent has risen 16% in 2019, supported by a supply-limiting pact by the Organization of the Petroleum Exporting Countries and allies including Russia. The producers meet on Dec. 5-6 to decide whether to extend the deal.

Oman, one of the outside producers working with OPEC, said on Monday that the alliance would probably extend the agreement but was unlikely to increase the size of the supply cut.

--Reuters contributed to this report

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.