Oil up as trade woes abate with Trump, Xi meeting

Oil up as trade woes abate with Trump, Xi meeting

WAAR_DUHOK

 

 

Crude oil prices were up to begin Wednesday as U.S. President Donald Trump said he will hold a meeting with his Chinese counterpart Xi Jinping, calming worries that global oil demand would be weak this year.

International benchmark Brent crude was trading at $62.42 per barrel at 0636 GMT for a 0.24% gain after closing Tuesday at $62.27 a barrel.

American benchmark West Texas Intermediate (WTI) was almost unchanged $54.36 a barrel at the same time after ending the previous session at $54.42 per barrel.

Brent crude jumped 2.2%, while WTI soared 4.8% on Tuesday after Trump said he will meet with China’s Xi, soothing the trade tension between the world’s two largest oil consumers.

“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan,” Trump wrote Tuesday on Twitter, adding “Our respective teams will begin talks prior to our meeting.”

The ongoing trade dispute between the world’s two biggest economies has caused whirlwind that global economic growth would slowdown and oil demand would be weak this year, pushing crude prices down.

U.S.-based rating agency Fitch Ratings said Monday it now expects global economic growth to decrease from 3.2% in 2018 to 2.8% in 2019, and to 2.7% in 2020.

Bank of America Merrill Lynch lowered its oil price estimate for the second half of 2019, and it now forecasts Brent to average $63 a barrel, down from the previous estimate of $68 per barrel.

 

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