Oil prices rose for a second day on Wednesday (October 22nd), rising about 2%, driven by rising US energy consumption and hopes for progress on a US trade deal with China and India.
Brent crude rose $1.29, or 2.1%, to $62.61 a barrel at 11:09 a.m. EDT (15:09 GMT), while US West Texas Intermediate crude rose $1.34, or 2.34%, to $58.58. US crude inventories fell during the week ending October 17th, according to the Energy Information Administration (EIA) on Wednesday.
Crude stocks fell by 961,000 barrels to 422.8 million barrels last week, compared with analysts' expectations in a Reuters poll for a 1.2 million-barrel increase. "That's impressive for the off-season," said Phil Flynn, senior analyst at Price Futures Group. "This shows the demand side of oil is strong, and the supply figures don't indicate this oversupply of oil, at least in the US."
Investors are also closely monitoring developments in US-China trade talks, as officials from both countries are set to meet this week in Malaysia. US President Donald Trump said on Monday that he hoped to reach a fair trade deal with Chinese President Xi Jinping, whom he will meet in South Korea next week. However, on Tuesday, Trump again added uncertainty to the meeting, saying it might not happen.
Meanwhile, supply concerns have grown amid news that a summit between Trump and Russian President Vladimir Putin has been postponed, and amid fears of disruption as Western governments pressure Asian buyers to reduce their purchases of Russian oil.
Trump said he spoke with Indian Prime Minister Narendra Modi on Tuesday, adding that Modi assured him that India would limit its oil purchases from Russia.
"Oil prices rose after reports showed the US and India were close to finalizing a trade deal that could see India gradually reduce imports of Russian crude, potentially boosting demand for other oils," said MUFG analyst Soojin Kim.
The Mint India newspaper reported on Wednesday that the two countries were close to reaching a long-delayed trade deal. The agreement would reduce US tariffs on Indian imports from 50% to 15-16%. (alg)
Source: Reuters
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease ...
Oil prices rose on Tuesday, supported by a combination of supply disruptions from Kazakhstan, improved global economic growth projections, and a weakening US dollar, making dollar-denominated oil chea...
Oil traded in a tight range on Thursday after two straight sessions of losses, as markets digested a sharper US push to shape Venezuela's crude flows—alongside fresh tanker seizures tied to sanctions....
Oil prices edged higher as the market digested the United States' latest moves regarding Venezuela. WTI held steady at US$56/barrel after a sharp drop, while Brent remained below US$60/barrel. This s...
Brent crude prices sank in volatile trading on Wednesday after U.S. President Donald Trump said Venezuela will supply tens of millions of barrels of oil to Washington. Oil prices were nursing losses ...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...