By Adedapo Adesanya
Brent Crude rose to $66 per barrel on Tuesday as major futures posted a fourth consecutive gains, banking on the US-China trade deal which has lifted prices to their highest levels in three months.
It was observed that as at Tuesday night, the Brent crude was up by 80 cents or 1.22 percent to exchange at $66.14 per barrel, while the WTI crude rose by 72 Cents or 1.2 percent to close to $60.93 per barrel.
The market’s bullish outcome shows a positive response to the trade agreement between the United States and China.
Business Post had reported that President Donald Trump signed off on a phase one trade deal with China, averting the December 15 introduction of a new wave of tariffs on about $160 billion of consumer goods from the Asian nation.
According to analysts familiar with the market, solid global economic data recorded this week is also supporting demand which is good for oil prices.
Prices for both Brent and WTI benchmark finished on Tuesday at their highest since September 16 and posted a fourth consecutive session climb, their longest such streak of gains since October.
Investors will hope the market continue to record gains especially with forthcoming data on US petroleum supplies, covering the week ended December 13.
The American Petroleum Institute (API) will release its weekly estimate of US crude inventories later on Wednesday, while the Energy Information Administration (EIA) will published its own data later on Wednesday.
It is predicted that US Crude inventories will fall and with this, oil prices will see a fifth day consecutive rise that can push Brent up to $67 and the WTI to $62 per barrel.
The support can also be attributed to the decision by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies to extend oil cut to 1.7 million barrels per day till March 2020 to help curb oil glut and prices. This is also assisting the general outlook of the market ahead of next year.
Dipo Olowookere