By Adedapo Adesanya
Crude oil extended gains on Friday, rising to a highest level in three months after news reached the market that the United States and China have agreed a resolution to the trade war between the world’s two biggest economies that has affected global demand for the commodity.
Business Post reports that at Friday’s trading session, prices of crude oil at the global market reached their highest since September when the attack on Saudi Arabia Aramco oil fields drove oil prices up.
As a result, the Brent Crude hit the $65 mark on Friday night as it climbed $1.02 or 1.59 percent to $65.22 per barrel to record its highest since September 23. The US West Texas Intermediate (WTI) crude was up 60 cents or 1.01 percent to $59.78 per barrel.
Other futures such as the OPEC basket were also trading up at $65.81 per barrel, while the Nigerian Bonny Light was also up at $65.61 per barrel.
President Donald Trump of the United States personally announced a phase one deal Friday and scrapped tariffs on Chinese goods that were set to go into effect on December 15, saying China had agreed to targeted purchases of US goods.
Reports had earlier speculated that Mr Trump has approved a phase-one trade deal with China which will put a stop to the planned new tariffs of about $160 billion in consumer goods that were set to take effect on Sunday.
President Trump said in a pair of tweets that the Chinese had agreed to many structural changes and massive purchases of American farm, energy and manufactured goods.
“We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more,” he tweeted.
A drop in the US dollar against the backdrop of a strong pound also helped to boost oil prices following the expected victory of Prime Minister of the United Kingdom, Mr Boris Johnson and the Conservative Party at the general election on Thursday.
