Oil Holds Gains Above $57 as U.S. Extends China Tariff Truce
Monday, 25 February 2019 07:43 WIB |
Oil held gains above $57 a barrel as the U.S. extended a deadline for its planned tariff increase on Chinese imports in the latest sign of progress between the two nations during trade negotiations.
Futures in New York were little changed after rising 0.5 percent on Friday. President Donald Trump said in tweet he will delay the tariff increase, which was set for March 1, after œsubstantial progress in trade talks. Meanwhile, working oil rigs in the U.S. fell for the first time in three weeks.
Hedge funds ratcheted up bets on rising Brent crude prices for a seventh straight week, the longest string of additions since August 2017.
Working oil rigs in the U.S. fell by four to 853 last week, according to data released Friday by oilfield-services provider Baker Hughes.
Vitol Group. said oil prices are set to rally further as OPEC output cuts and American sanctions on Iran and Venezuela cause a œshortage of the low-quality heavy crudes refiners rely on.
WTI for April delivery trades at $57.31/bbl on Nymex, +5c, at 8:35am in Tokyo. Contract +30c to $57.26 on Friday.
April Brent +12c to $67.24/bbl on ICE Futures Europe exchange. Contract +5c to $67.12 on Friday. Brent at $9.91 premium to WTI for the same month.
Source : Bloomberg