Oil Extends Gains on Optimism Over Trade Deal, U.S. Inventories
Tuesday, 8 January 2019 07:18 WIB |
Oil extended its longest streak of gains in almost 1 1/2 years on optimism the U.S. and China can reach a trade deal in talks and U.S. crude inventories will fall.
Futures in New York climbed as much as 0.7 percent and are on course for a seventh day of gains, the longest winning streak since July 2017. There's a œvery good chance the U.S. gets a reasonable deal with China, Commerce Secretary Wilbur Ross told CNBC Monday, as trade negotiations began in Beijing. Meanwhile, expectations for declining U.S. crude inventories eased concerns over a supply glut.
U.S. crude inventories probably fell 1.75 million barrels last week, according to a Bloomberg survey. If Energy Information Administration data due Wednesday confirms that, it will be the fifth weekly decline in six weeks.
WTI for Feb. delivery rose as much as 33c to $48.85/bbl on Nymex, trades at $48.78 at 8:53am in Tokyo. Contract added 56c to $48.52 on Monday.
March Brent gained 27c to $57.33/bbl on ICE Futures Europe exchange on Monday. Brent ended session at $8.51 premium to WTI for the same month.