By Adedapo Adesanya
Oil rose on the first trading day of the week on Monday, November 4, supported by an improved outlook for crude demand and a rise in US jobs growth. Also, the oil market found strong support on the back of the premise that the first phase of the US-China trade deal would be settled this month.
Brent crude, the global benchmark, as at the time of this report last night, gained 46 cents or 0.75 percent to settle at $62.15 per barrel, while the US Crude, West Texas Intermediate (WTI), rose by 37 cents or 0.66 percent to sell at $56.69 per barrel.
Oil recorded its biggest gains in seven weeks as prices went up more than 3 percent last week primarily due to hopes that a trade deal could be reached after supporting data from both China and the US were released.
Business Post understands that the two world’s largest economies are moving closer to a partial trade deal and despite worries over whether an agreement could be reached, this is looking good for oil demand.
According to a statement by the Chinese government, President Xi Jinping, and his US counterpart, President Donald Trump, both parties have been in discussion through various means concerning the trade.
US job growth recorded in October also lent support to oil prices as figures showed an improvement from the two previous months, which help slowed down fears of low demand for oil.
According to analysts, the Federal Reserve’s interest rate cut last week and the recent weakness in the American Dollar also helped prices to go up and as a result of this demand for crude oil, which is traded in Dollars, gains grounds when the currency depreciates.
Prices are expected to further improve based on these factors on Tuesday with the possibility of the Brent reaching close to $63 per barrel and the WTI as high as $57.
