U.S. President Donald Trump told reporters overnight that a trade deal with China could happen “faster than you think”, raising hopes that global demand for oil will increase. China and the US are the world’s largest oil importers.
Oil prices were set in Asia on Thursday in positive trade news.
WTI Futures crude futures changed slightly at $ 56.50 from 11:18 PM ET. Brent International Oil futures also stayed flat at 62.37.
Trump’s comments came just a day after he said he would not accept a “bad trade deal” and accused China of unfair trade practices.
On the other hand, Bloomberg cited people familiar with the matter and reported that Saudi Arabia has increased its overall production capacity to more than 11 million barrels per day, which is more than its previous target.
Oil prices were under pressure as data showed a sharp rise in US crude inventories.
US oil stocks rose by 2.4 million barrels last week, the Energy Information Administration announced, against market expectations of a 250,000 barrel draw. It was the weekly straight-line crude construction quoted by the EIA after the four-hour weeks of heavy crude withdrawals late in the summer that took 24 million barrels from the reserves.
“This may be the clearest signal that crude withdrawals after the summer are over and that we can see significant construction here, which is hardly ideal for oil bulls as the impact of the Saudi attack risk is slowly exacerbating,” the analyst Investing.com Said Barani Krishnan./Investing.com