Crude has been rising since early October on the thaw in trade hostilities between the world’s two largest economies, although investors are becoming increasingly fatigued over how long the negotiations are taking. WTI Crude is $58.12; Brent is $63.77 this morning.
On Friday, U.S. President Donald Trump and Chinese President Xi Jinping expressed a desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth. WTI Crude is $57.64; Brent is $63.19 this morning.
Prices touched their highest levels since late September on Thursday after reports that OPEC and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5 and 6. WTI Crude is $58.47; Brent is $64.00 this morning.
The Saudis want to see how the rest of those who are not complying with the cuts do first. There are no numbers being circulated so far for deeper cuts or changing output quotas, said an OPEC source. WTI Crude is 57.25; Brent is $62.63 this morning.
The IEA, the U.S. Energy Information Administration, and OPEC still see global oil inventories building in the first half of 2020. If OPEC+ producers continue pumping, the EIA and OPEC have cut the size of the build, and have become more positive for the second half of 2020. WTI Crude is $55.54; Brent is $61.43 this morning.
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