Oil prices surge on hopes that US-China will resolve trade
Oil prices rose on Wednesday, extending gains from the previous session on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown. U.S. West Texas Intermediate (WTI) crude oil futures were at $50.29 per barrel as at 0131, up 51 cents, or 1 percent from their last settlement. It was the first time this year that WTI has topped $50 a barrel. International Brent crude futures were up 42 cents, or 0.7 percent, at $59.14 per barrel. Both crude price benchmarks had already gained more than 2 percent in the previous session. “Crude continues to extend gains as early reports from Beijing regarding trade negotiations are fueling optimism around successful trade talks between the U.S. and China,” said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. “After a dreadful December for risk markets, Crude oil continues to catch a positive vibe,” he added. The world’s two biggest economies will continue trade talks in Beijing for an unscheduled third day on Wednesday, U.S. officials said, amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased U.S. access to China’s markets.
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